BIS to focus on tokenization and CBDC as part of 2024 strategy

Roadmap 2024 shows regulators will continue to engage with digital fintech.

The Bank for International Settlements (BIS) has published its strategic priorities for 2024, with a particular emphasis on central bank digital currencies (CBDC) and tokenization.

The 2024 roadmap indicates that regulators will continue to engage with digital fintech. The BIS has taken a strong pro-CBDC stance and issued a comprehensive framework for countries seeking to create their own localized digital currencies.

Exploring tokenization

One of the most ambitious tasks on the BIS 2024 agenda is the Promissa project, which aims to revolutionize financial instruments by digitizing promissory notes using blockchain technology.

Despite their integral role in the financial system, promissory notes remain paper-based. Regulators say their digitization could greatly improve the efficiency and transparency of financial transactions.Bitcoin Miner

The Promissa project is a partnership between the Bank for International Settlements, the Swiss National Bank and the World Bank. The proof-of-concept phase of the project is expected to be completed by early 2025.

Aurum Program

Project Aurum, a joint initiative with the Hong Kong Monetary Authority (HKMA), complements the tokenization effort, which completed an initial pilot testing phase in 2022.

Project Aurum will focus on privacy issues for retail payments using CBDC. Following the initial phase in 2022, the project aims to delve deeper into the privacy issues associated with CBDCs.

Given the growing global interest in digital currencies and the need for secure, private transactions, the Aurum project’s exploration of CBDC privacy is critical. The project fits into the regulator’s broader strategy and highlights the increasingly important role of CBDCs in reshaping the financial sector.

The BIS’s 2024 agenda includes four other projects: Project Leap, Project Symbiosis, Project Hertha, and Project NGFS Data Directory 2.0. These projects cover cybersecurity, green finance, and financial crime. This diversification demonstrates the BIS’s broad involvement in all aspects of fintech.Whatsminer Miner

Historically, the BIS has maintained a cautious approach to digital currencies, with a particular focus on the impact of stablecoins.2023 At the end of the year, Agustín Carstens, General Manager of the BIS, emphasized the importance of central banks in the innovation of digital currencies, with a focus on CBDCs.