The G20 aims to enhance multilateral development banks’ financing capacity to tackle global challenges in the 21st century. Currently, many international financial institutions, including multilateral development banks, rely on paper-based promissory notes for funding. To address operational challenges and improve efficiency, Project Promissa, a collaboration between the BIS Innovation Hub Swiss Centre, the Swiss National Bank, and the World Bank, aims to develop a proof of concept (PoC) for a digital platform that tokenizes promissory notes. By utilizing distributed ledger technology, Project Promissa seeks to simplify note management and provide a single source of truth for all parties involved. This will enable member nations and central banks to have a comprehensive overview of outstanding notes, while international financial institutions will have visibility of notes held by different central banks. The project’s goal is to complete the PoC and testing by early 2025. In the future, the project could potentially extend to include tokenized payment systems associated with these notes.
HomeCBDCBIS ProjectsExploring Tokenization of Financial Instruments: Swiss National Bank, World Bank, and BIS...