“CBDCs Increase Payment Speeds”
In the report published by researchers with the Central Bank of New York and the Monetary Authority of Singapore (MAS), it was stated that central bank digital currency (CBDC) systems operating in different networks can be used for cross-over and cross-currency payments.
The report, which is part of the Project Cedar / Project Ubin research jointly carried out by NY Central Bank’s Innovation Center and MAS, shows that the relevant teams can perform cross-border transactions between different distributed ledger (DLT) and hashed time lock contract (HTLC) technologies. adds. It is also emphasized that a near real-time solution can be achieved.
In the press release, it was said that the researchers were working on interoperability, atomic solutions, and whether the operations could occur in near real-time. Studies are conducted through simulated CBDCs and hypothetical payments.
The report states that the researchers created eight different scenarios to test their interoperability hypotheses. Atomic solution tests showed that all transactions averaged 6.5 payments per second, with a peak of 47 payments per second. According to the report, these payments were made end-to-end, with researchers reaching payment delays of less than 30 seconds. Michelle Neal, head of the New York Federal Reserve’s markets group, said cross-border payments are a huge development for the global economy. Neal said: “Our research partnership with MAS plays a pivotal role in facilitating payment flows globally.”
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