Project Mariana represents an expansion of prior experiments conducted with wCBDCs, aimed at enhancing the efficiency, safety, and transparency of FX trading and settlement. It is a collaborative proof of concept (PoC) involving the BIS Innovation Hub, Bank of France, Monetary Authority of Singapore, and Swiss National Bank.
The project builds upon past experimental endeavors in three key dimensions, drawing inspiration from emerging decentralized finance (DeFi) technology.
- Within this initiative, the focus is on joint trading and settlement in wCBDCs utilizing an automated market-maker (AMM). This marks an evolution from previous cross-border wCBDC projects that concentrated solely on settlement. AMMs are smart contracts that leverage liquidity pools to automatically swap tokenized assets, contrasting with the traditional method of matching buyers and sellers via limit order books.
2. Project Mariana evaluates a shared standard for fungible wCBDC tokens, incorporating design elements aligned with central bank prerequisites. This standardized technical framework enables (i) compatibility among various wCBDCs within the same protocol, particularly the AMM, and (ii) the implementation of governance mechanisms at the token level without the need to exert control over the underlying platform or rely on a third-party platform operator.
3. The project also explores the mobility of assets across diverse blockchain-based networks through bridges, expanding upon previous initiatives that tested wCBDCs.
It’s crucial to emphasize that the project is purely experimental and should not be interpreted as an indication that any of the participating central banks have intentions to issue CBDCs or endorse DeFi or any specific technological solution.
Project Mariana is primarily centered on an experimental setup that focuses on FX spot trading and settlement utilizing hypothetical euro (EUR), Swiss franc (CHF), and Singapore dollar (SGD) wCBDCs, involving both commercial banks and central banks. More specifically, it investigates the viability of establishing an international FX interbank market using wCBDCs on a blockchain-based network. This network is interconnected with domestic platforms through bridges to facilitate the transfer of wCBDCs.
The project is still on-going and the final report is expected to be published by end of 2023.
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