Bank for International Settlements – BIS’ Post

Did you know that many multilateral development banks (MDBs) are partly funded by financial instruments known as promissory notes, most of which are still paper-based? While this arrangement gives countries operational control over their subscriptions and payments to institutions like the World Bank, the reliance on a paper-based instrument makes the process time-consuming and cumbersome. Project Promissa aims to resolve these issues. The joint initiative of the Bank for International Settlements’ Innovation Hub, the The World Bank and the Swiss National Bank explored how to modernize the management of promissory notes by digitising them and putting them on a distributed ledger, a process known as tokenisation. The project team built a proof-of-concept platform for tokenised promissory notes that both resolved inefficiencies and met key requirements of participating governments, central banks and MDBs. The project is aligned with the G20 goal of delivering better, bigger and more effective MDBs fit for the challenges of the 21st century. Read the report here: https://lnkd.in/e36vtdix Watch the video: https://lnkd.in/ePV9_qju