Major Banks Expand Testing for Digital Payment Project
The Bank for International Settlements and over 40 commercial banks are advancing Project Agora to streamline cross-border transactions using tokenized reserves. The initiative aims to create a 24/7 global payment system that reduces costs and settlement times across major currencies.
The New York Federal Reserve and a coalition of global central banks will expand testing of Project Agora to modernize cross-border digital payments. The initiative involves 40 commercial banks and regulators from the United States, South Korea, Mexico, Japan, and now Canada. Success in these trials could eliminate delays in settlement and high fees that currently plague international capital flows.
### Tokenization Targets Always-On Settlement Project Agora uses tokenized central bank reserves and commercial bank deposits to facilitate 24/7 transactions. BIS Deputy General Manager Andrea Maechler said recent testing proved these digital assets can function together within a unified ecosystem. The project aims to replace the current web of intermediary banks that often slows transfers involving smaller emerging economy currencies.
