Despite the project’s success, central banks warned that significant rulebooks, contingency procedures, and monitoring capabilities were required to ensure the success of a CBDC.
The Banque de France (BdF), the BIS Innovation Hub (BISIH), and the Swiss National Bank (SNB) announced the success of Project Jura, a pilot run of a wholesale central bank digital currency (wCBDC). The project was launched on a thirdparty distributed ledger technology platform to investigate crossborder settlement with euro and Swiss franc wCBDCs.
Project Jura’s experimental technology consisted of a decentralized peer-to-peer network of computer nodes (Corda) that validated transactions while simultaneously ensuring that all legal, regulatory, and business rules of governing nations were met. Then there was the tokenization of the aforementioned fiat currencies, as well as the Negotiable European Commercial Paper, a debt instrument denominated in euros with a short maturity (one year or less). Finally, Project Jura investigated infrastructure networks capable of realtime gross settlement of transactions, bond digitization, and a digital asset registry.
Although the trial was successful, it does not guarantee that Swiss, French, or European Union authorities will issue a wCBDC. According to the report, “wCBDCs could be incorporated into novel settlement arrangements that could change the structure and functioning of capital markets, money markets, and foreign exchange markets,” and that “wCBDCs could be incorporated into novel settlement arrangements that could change the structure and functioning of capital markets, money markets, and foreign exchange markets.”
“Broadening the use of central bank money through greater access or increased crossborder settlement, as well as deeper integration of currencies with other digital assets and securities, could catalyze these changes.”