The Bank for International Settlements (BIS) Releases Project mBridge Update
The Bank for International Settlements (BIS) has released an update on its Project mBridge, providing new information about the central bank digital currency (CBDC) bridge. The update combines technical and promotional discussions and prepares the project for its commercial launch next year.
Key Details of the Update
The update gathers previously scattered or unavailable information about the CBDC bridge. It explains the governance structure in general terms and presents technical details in a readable manner for non-specialists.
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Introduction of Dashing Consensus Algorithm
The update introduces the Dashing consensus algorithm, which was previously only announced in Chinese-language media. The algorithm is described as a Byzantine Fault Tolerance (BFT) consensus protocol that reduces the time needed to achieve consensus and improves overall protocol performance through proofs of partial confirmation of block validation.
Use of Legal Entity Identifiers for AML/CFT
The update also reveals the use of legal entity identifiers for Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT). This is new information that adds to the project’s transparency and compliance measures.
Hot Take: BIS Making Progress with Project mBridge
The Bank for International Settlements’ release of the Project mBridge update demonstrates significant progress in its efforts to develop a central bank digital currency bridge. The update provides comprehensive information about the project’s governance structure, technical details, and innovative consensus algorithm. Additionally, the use of legal entity identifiers for AML/CFT showcases BIS’s commitment to compliance and transparency. With preparations underway for its commercial launch next year, Project mBridge is on track to become a minimum viable product that could revolutionize the world of digital currencies.
