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Yes, the Bank for International Settlements (BIS) is expected to play a significant role in the development of Distributed Ledger Technology (DLT) and blockchain-based banking systems.
Here’s how:
* Innovation Hub: The BIS has established an Innovation Hub with centers around the world. A key mandate of this hub is to foster international collaboration among central banks on innovative financial technology, including DLT. They aim to:
* Identify and develop insights into critical technology trends affecting central banking.
* Develop public goods in the technology space to improve the functioning of the global financial system.
* Serve as a focal point for a network of central bank experts on innovation.
* DLT Research and Projects: The BIS actively conducts research and experiments related to DLT and its potential applications in central banking and the broader financial system. This includes:
* Project Promissa: A collaboration involving the BIS Innovation Hub, the Swiss National Bank, and the World Bank, which demonstrated the use of DLT for redesigning paper-based promissory notes to improve efficiency.
* Project mBridge: An initiative exploring a multi-central bank digital currency (CBDC) platform for instant cross-border payments using DLT. While the BIS has handed over the project to the participating central banks, its initial involvement was crucial in its development.
* Project Agorá: A project involving multiple central banks and commercial institutions aiming to modernize correspondent banking and cross-border payments using tokenization.
* Project Helvetia: Investigating the settlement of tokenized assets in central bank money using DLT.
* Research on Embedded Supervision: Exploring how DLT could enable automated regulatory compliance monitoring in blockchain-based finance.
* Analysis and Frameworks: The BIS provides analytical frameworks for central banks and other authorities to assess the use of DLT in payment, clearing, and settlement systems, identifying both opportunities and challenges.
* Collaboration and Knowledge Sharing: The BIS serves as a platform for central banks to collaborate, share knowledge, and learn from each other’s experiences with DLT and related technologies.
In summary, the BIS, through its Innovation Hub and various projects, is actively involved in exploring the potential of DLT and blockchain for the banking system. It aims to foster innovation, improve the efficiency and safety of financial systems, and provide guidance to central banks as they navigate this evolving technological landscape.

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