Project JURA, an experimental technology was explored that consisted of a peer-to-peer network of computers (Corda) that validated transactions following all legal government norms.
The BIS Innovation Hub (BISIH), the Swiss National Bank (SNB) and the Banque de France (BdF) announced on Wednesday the success of a pilot program to introduce a wholesale central bank digital currency (wCBDC) titled project Jura. Earlier this year, the project was launched on a third-party distributed ledger technology platform to investigate cross-border settlement with euro and Swiss franc wCBDCs. The central banks warned that even though the project was a success, there were significant rules, procedures, and monitoring capabilities that were needed to make a CBDC successful.
In Project JURA, an experimental technology was explored that consisted of a peer-to-peer network of computers (Corda) that validated transactions as well as ensuring compliance with all legal, regulatory and business standards of the governing nations are satisfied. Next, there were the tokenization of the aforementioned fiat currencies, as well as Negotiable European Commercial Papers, an instrument of short maturity (one year or less) denominated in euros. The final part of Project Jura focused on networks enabling real-time gross settlement of transactions, bond digitization, and an asset registry.
In spite of the success of the trial, the Swiss, French or European Union authorities are not required to issue wCBDCs. A report concluded that “World central bank-owned development companies (WCBDC) can be incorporated into novel settlement arrangements that could transform the structure and functioning of capital markets, money markets, and foreign exchange markets.” – Stating that:
“Broadening the use of central bank money through wider access or increased cross‑border settlement could catalyse these changes, as could deeper integration of currencies with other digital assets and securities.”