Bank for International Settlements: Tokenization may significantly enhance the efficiency and security of cross-border payments

Odaily reports that the latest research from Project Agorá, led by the Bank for International Settlements (BIS), shows that tokenization technology is expected to significantly improve settlement speed and reconciliation efficiency in cross-border payments, while reducing transaction failures and operational risk.

This project is a collaboration between BIS, seven central banks, and more than 40 financial institutions, including the New York Fed, Bank of England, Bank of Japan, and Swiss National Bank.

The research suggests that tokenizing central bank reserves and commercial bank deposits could support cross-currency, cross-jurisdiction "atomic settlement," enabling transactions to be "completed or failed simultaneously," thereby lowering credit and settlement risks commonly seen in cross-border payments.

Currently, Project Agorá has completed its simulation testing phase and plans to move into the "real-value" transaction testing phase to explore on-chain settlement applications for certain currencies and institutions in a real-money environment. (CoinDesk)