The Bank of International Settlements (BIS) has introduced its latest innovation center in Canada in partnership with the central bank of the country. In a joint announcement on June 13, the global financial institution and the Bank of Canada (BOC) revealed the opening of the BIS Toronto Innovation Centre, aimed at advancing the work of the BIS Innovation Hub. The Toronto hub will focus on exploring new technologies to enhance inclusivity and efficiency within the financial system.
The hub will concentrate on six key areas for BIS: central bank digital currencies (CBDCs), green finance, cybersecurity, open finance, innovation for regulatory and supervisory purposes, and next-generation financial market infrastructures.
In terms of financial innovation in Canada, the announcement emphasized that the new hub will operate in Canada, Latin America, and the Caribbean. Bank of Canada Governor Tiff Macklem emphasized the significance of the partnership between the hub, the central bank, and the BIS in driving innovation in the region. Macklem stated:
At the same time, BIS General Manager Agustín Carstens described the launch of the hub as a “significant milestone” in the BIS’s mission to shape the future of the financial system. Carstens expressed excitement about the collaboration between the BIS and Canada’s central bank. He added:
“We are eager to collaborate with the Bank of Canada and other central banks to promote a more modern, efficient, and inclusive financial system.”
Regarding the BIS’ work on CBDCs and tokenization, the organization unveiled its work program for 2024 on Jan. 23. Some of the key focuses for the year include the continuation of CBDC privacy testing and the initiation of a blockchain-based tokenization project.
On April 3, the BIS announced a significant collaboration with the central banks of France, Japan, South Korea, Mexico, Switzerland, the United Kingdom, and the United States. The initiative, named “Project Agora,” delves into asset tokenization within the financial system and private institutions. Project Agora aims to develop a unified ledger concept that bridges wholesale central bank funds and tokenized commercial bank deposits.
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