The Bank for International Settlements launches Project Agorá to transform cross-border payments through tokenization technology

ChainCatcher news, according to LedgerInsights, the Bank for International Settlements (BIS) Innovation Hub has launched Project Agorá, in collaboration with seven central banks, to transform cross-border payments through tokenization technology. The project utilizes wholesale central bank digital currencies (wCBDC) and tokenized deposits to execute payments on a unified ledger, simplifying compliance processes.

It is reported that tokenization can achieve atomic settlement, meaning payments are simultaneously reflected in the balances of all banks, and it simplifies Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures. The BIS is also experimenting with shared protocols in Project Mandala, providing "compliance proof," and suggesting the use of Artificial Intelligence (AI) to establish AML monitoring models. The BIS emphasizes that the next generation of correspondent banking should be inclusive, accessible, and capable of capturing network effects.