Daniel Eidan of BIS: “Central banks and innovation can co-exist”

Daniel Eidan of BIS: “Central banks and innovation can co-exist”

Daniel Eidan of BIS: “Central banks and innovation can co-exist”

Interviewed By Foo Boon Ping

Inclusive innovation in central banking can enhance monetary and financial stability, according to Daniel Eidan, advisor and solution architect of BIS, speaking at the Excellence in Retail Financial Services Convention 2023

  • CBDCs can connect economies more effectively by reducing the cost of cross-border settlements
  • Technology developed by BIS Innovation Hub enables atomic and instant cross-border transactions
  • Rollout of technologies still depends on individual governance of central banks

Daniel Eidan leads the development of solutions for central banking systems in order to facilitate cross-border payments transactions and correct inefficiencies using blockchain, distributed ledger technology and central bank digital currencies (CBDC). He is the advisor and solution architect at the Bank for International Settlements (BIS).

Two of BIS Innovation Hub’s ongoing projects are aimed at connecting economies more effectively by driving down the cost of cross-border settlements and reducing the time to clear payments.

BIS’ Project mBridge would support the use of local currencies in cross-border payments through a multi-CBDC platform with central banks driving the transactions through consensus protocol. Today’s network of banks is constrained by high cost, low speed and complex operations. The platform would enable real-time, peer-to-peer cross-border payments.

Project Mariana, still in its infancy, is an open and composable technology that explores the use of automated market makers to automate foreign exchange.

Eidan said: “From a technology perspective, we have been able to show that you can connect financial institutions across borders in a way that’s safe and secure, that can functionally settle payments instantly. The implications of that are massive.

“With that in mind, it’s not as easy as it seems. When thinking about the reality of why correspondent banking is the way it is, a lot of it is relationship-based. The challenge is enormous.”

With the pilot test completed, it would be possible to have a regional rollout of the mBridge platform within 24 months, said Eidan, but the speed of production would still depend on local governance as not all central banks have the authority to issue digital currencies.

For banks and regulators to be receptive of these technologies, BIS would have to prove that its solutions have better connectivity and liquidity features, as well as more use cases for participants.





Session Host:


Christian Kapfer

Research Director,
The Asian Banker


Foo Boon Ping

President and
Managing Editor,
The Asian Banker

Supported by:



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About The Asian Banker RadioFinance:

The Asian Banker RadioFinance aims to enhance understanding of the finance industry globally by bringing together thought leaders, industry experts, practitioners and futurists to examine current, critical issues through discussions facilitated by visual and web-based platforms. Through the use of interactive technology, participants do not have to take time out from their busy schedules or leave the comfort of their own desks.

Keywords: Cash, Digital Wallet, CBDC, Mbridge, Cross-Border Payments, Blockchain, Project Mariana

cash, digital wallet, CBDC, mbridge, Cross-Border Payments, blockchain, project mariana


by : on 2023-04-25 11:46:00

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#Daniel #Eidan #BIS #Central #banks #innovation #coexist

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