Securities Finance Technology News | BIS Innovation Hub presents the 2022 program


The Bank for International Settlements Innovation Hub will launch new projects focused on central bank digital currencies (CBDCs), decentralized finance and the development of next-generation payment systems in 2022.

The Innovation Hub work program will also launch new projects on green finance, regulatory technology and cybersecurity, according to the Basel-based organization.

According to the BRI, 2022 will represent a new phase of growth for the innovation hub, with the launch of the first projects in its London and Nordic centers and the opening of new centers in Toronto and the EU to support the Eurosystem.

The Innovation Hub will also enter into a strategic partnership with the US Federal Reserve.

Measures to develop CBDCs and promote improved payment systems remain an exploratory priority area, representing 13 of the 17 projects that were underway in 2021 or will begin in 2022.

The BIS has scheduled its second BIS Innovation Summit for March 22-23, 2022, with a conference program titled Money, Technology and Innovation.

BIS Managing Director Agustin Carstens said: “With an expanded network of hub centers and exciting new projects, the BIS Innovation Hub is now in a stronger position to innovate in a healthy and sustainable way, harnessing the benefits of digital technology, serving the public interest, and working in cooperation with the central banking community, academia and the private sector.”

Among the leading initiatives active in the Innovation Hub network, the Swiss Center and the Swiss National Bank are evaluating the results of two CBDC-related projects, Helvetia II project and Project Jura, to assess the potential of CBDC-based projects using Arena, an internal blockchain platform established as a testing ground for central banks.

In Switzerland, Project Rio is studying how central banks can use streaming data to monitor rapidly changing electronic markets.

At the Singapore Innovation Center, Project Ellipse is creating a platform for financial supervisors to digitally mine, query and evaluate large datasets from diverse sources, applying artificial intelligence and l machine learning to support this process.

At the same location, Project Nexus is studying how to integrate the national instant payment systems of Singapore, Malaysia and Italy. Dunbar Project is developing a shared settlement platform for multiple CBDCs.

In the Hong Kong hub, a new project is evaluating the application of DeFi technology, including blockchain, tokenization, smart contracts and customer identification technology, to improve financing opportunities for small businesses. and medium enterprises.

Other projects at the Hong Kong Innovation Center are looking at broader applications of CBDCs, including mBridge (integrating wholesale CBDCs from four central banks), Aurum (a retail CBDC prototype), and Genesis (technology for green financing and reducing carbon emissions).

The London Innovation Hub will launch its first projects, focusing on using CBDCs to develop innovative payment solutions and using retail CBDCs as a payment, transfer and store of value mechanism.

Similarly, the Nordic Center will launch its first two projects in 2022: one using payment data to detect illegal activities such as tax evasion, money laundering and terrorist financing; the other exploring security and resiliency demands and solutions that will allow CBDCs to be employed offline.


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