The Bank for International Settlements (BIS) has announced a set of six pioneering projects for 2024, signaling a significant leap in the integration of emerging financial technologies such as quantum security, AIand green finance. The move demonstrates BIS’s commitment to enhancing the resilience and efficiency of the global financial system in an increasingly digital and green era.
The six projects, as described by the BIS Innovation Hub, are as follows:
- Project Leap (Eurosystem Centre): Focused on “quantum-proof” payment systems, this initiative seeks to protect financial infrastructures against potential threats posed by advances in quantum computing. The Eurosystem Center is leading this effort, underscoring the importance of future-proof payment systems in the digital age.
- Symbiosis Project (Hong Kong Center): Using artificial intelligence and big data, this project aims to revolutionize emissions tracking in supply chains, with a particular focus on Scope 3 emissions. The initiative highlights the critical role of technology in addressing the changing climate and promoting sustainable business practices.
- Aurum Project (Hong Kong Center): This project addresses the privacy aspects of retail central bank digital currencies (CBDC). In collaboration with academic and privacy experts, it reflects BIS’s commitment to balancing innovation in digital currencies with the need for user privacy.
- NGFS Data Directory 2.0 Project (Singapore Center): Aimed at improving the accessibility and usability of climate-related financial data, this project supports the Greening the Financial System (NGFS) Network. It examines the growing importance of climate risk in financial decision-making.
- Project Promissa: Exploring the use of distributed ledger technology, this project tests the tokenization of promissory notes, a critical component in financing international financial institutions. It highlights the potential of blockchain technology to improve the efficiency and security of financial transactions.
- Project Hertha (London Centre): This initiative applies network analytics to identify patterns of financial crime in real-time payment systems, demonstrating BIS’s commitment to fighting financial crime and improving the integrity of the financial ecosystem.
Cecilia Skingsley, head of the BIS Innovation Hub, highlighted the importance of these projects, saying they reflect a commitment to safety and efficiency in financial services, in line with the principles set by the G20 countries. The projects build on the completion of 12 initiatives in 2023, with a further eight underway, demonstrating BIS’s proactive approach to addressing the challenges of the modern financial landscape.
These projects are also in line with the BIS’s broader efforts in criticizing cryptocurrencies, advocating for transparency reforms and monitoring complex securities, further cementing its role in promoting stability and stability in the global financial system.
As the financial world grapples with the implications of digital transformation and environmental challenges, the BIS’s 2024 Agenda is a testament to its role as a leader in shaping policies and infrastructure for a sustainable and secure financial future.
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