Project Nexus by BIS: Key Points
- Project Overview:
- Initiative by Bank for International Settlements Innovation Hub (BISIH).
- Aims to enhance cross-border payments by connecting multiple domestic instant payment systems (IPS) globally.
- Delivered a comprehensive blueprint during its third phase of development.
- Next Phase: Implementation:
- Moving into the implementation and roll-out phase.
- Engagement with central banks and IPS operators from India, Malaysia, the Philippines, Singapore, and Thailand.
- Establishment of Nexus Scheme Organisation (NSO):
- New entity responsible for Nexus management.
- NSO to be owned by central banks and IPS operators, with BISIH maintaining a technical advisory role.
- First BISIH-developed project in payments to move towards live implementation with instant payment providers.
- Impact and Potential:
- Potential to connect a market of 1.7 billion people globally.
- Aims to facilitate instant, easy, and cheap cross-border payments.
- Support and Goals:
- Aligns with G20 cross-border payments programme.
- Supports BISIH mission to develop public goods in the technology space to aid central banks and enhance financial system functioning.
- Technological Innovations:
- BISIH exploring latest tech innovations for swifter cross-border settlements.
- Example: Project Agorá, launched in April, exploring tokenization to improve cross-border settlements.
