Top global banks join G7-led digital currency pilot

Forty of the world’s top commercial banks have joined a G7-led pilot scheme, known as the Agora project, in collaboration with the New York Federal Reserve and central banks from Europe, Korea, and Japan.

The project aims to create a new digital currency platform to enhance cross-border payments.

The Agora initiative will explore the use of tokenised bank deposits alongside central bank digital currencies (CBDCs) for bank-to-bank transactions.

It seeks to address issues like time zone differences, legal frameworks, and regulatory challenges in the financial system. Major banks participating include JPMorgan, HSBC, UBS, and Japan’s MUFG.

Led by the Bank for International Settlements (BIS) and the Institute of International Finance, the project signals a growing divide in CBDC development between Agora and a competing initiative, mBridge, involving central banks from China, Hong Kong, Thailand, and the UAE.