Cenbank digital currency scheme launches in Malaysia, Singapore, Australia, and South Africa

Central banks in Australia, Singapore, Malaysia, and South Africa will test cross-border payments using various central bank digital currencies (CBDCs) to see if transactions can be resolved more cheaply and easily, the banks announced today.

CBDCs, which are digital versions of existing currencies, are being investigated by many governments and central banks around the world.
Some countries, such as China, are testing retail-focused CBDCs to mimic cash in circulation, while others are considering utilising so-called wholesale CBDCs to better their financial systems' internal workings.

The majority of the initiatives are still in the early phases and are primarily focused on the domestic market, but defining global norms and frameworks for how CBDCs can be utilised internationally is both technically and politically challenging.

The Reserve Bank of Australia, Bank Negara Malaysia, the Monetary Authority of Singapore, the South African Reserve Bank, and the Bank of International Settlements' Innovation Hub, which is leading the scheme, said in a statement that the latest project aims to develop prototype shared platforms for cross-border transactions using multiple CBDCs.