The Bank for International Settlements Expands Its European Centers to Focus on DeFi, CBDCs, Cybersecurity, and Green Finance

03/29/2023 10:43 • Blockchain Buzz • 136 views

According to reports, the Bank for International Settlements has opened its European centers in Paris and Frankfurt, focusing on DeFi, wholesale CBDC, cybersecurity, and green finance. The center will be equipped with a multidisciplinary team that will work with central banks in the region to investigate some of the most pressing technical challenges facing the international financial system.

The Bank for International Settlements opens innovation centers in Paris and Frankfurt

The Bank for International Settlements (BIS) has announced the opening of its European centers in Paris and Frankfurt, with a particular focus on DeFi, wholesale CBDC, cybersecurity, and green finance. BIS has established a multidisciplinary team in both cities, tasked with working alongside regional central banks to investigate some of the most pressing technical challenges facing the international financial system.

The Role of the Bank for International Settlements

Founded in 1930, The Bank for International Settlements (BIS) is the oldest international financial institution. It facilitates cooperation between global central banks and acts as a focal point for research into monetary and financial stability. As it stands, the BIS’ international reach spans 63 jurisdictions, including 63 central banks and monetary authorities.
In line with its objectives, BIS has opened two new European Centers in Paris and Frankfurt, two of the continent’s financial powerhouses. The purpose of the centers is to facilitate cooperation between the regional central banks, while also investigating technical challenges that arise as the world moves towards a more digital and decentralized financial system.

The Focus of BIS’ European Centers

DeFi

Decentralized Finance (DeFi) is the hottest topic in the blockchain world at present, drawing attention from all quarters of the financial sector. As such, it is no surprise that BIS has dedicated significant resources towards understanding how DeFi fits into the greater financial landscape. The European centers will focus on researching the regulatory, technical, and operational challenges that arise with decentralized financial systems.

Wholesale CBDC

Central Bank Digital Currencies (CBDCs) are digital representations of fiat currency that central banks issue and regulate. Wholesale CBDCs, on the other hand, are digital currencies that the central banks issue only to a select group, such as other banks or financial institutions. The European Centers will examine how wholesale CBDCs can fit into the existing financial system, particularly with regard to cross-border transactions.

Cybersecurity

As the financial system moves towards greater digitization, cybersecurity becomes an ever-greater concern for financial institutions. The European Centers will provide research and support to central banks in the region, assisting in the development of cybersecurity policies and practices.

Green Finance

Green finance is an emerging field, with a particular focus on investing in sustainable and renewable energy. The European Centers will work with the central banks in the region to explore the potential of green finance, particularly in the areas of debt issuance and infrastructure projects.

Conclusion

The opening of BIS’ European Centers in Paris and Frankfurt is a significant development for the financial sector. Its multidisciplinary team will play a critical role in exploring the potential of decentralized finance, wholesale CBDCs, cybersecurity, and green finance. As the financial landscape continues to evolve, the work of the European Centers will help central banks in the region to navigate the challenges ahead.

FAQs

What is BIS?

The Bank for International Settlements is the oldest international financial institution, founded in 1930. It facilitates cooperation between global central banks and acts as a focal point for research into monetary and financial stability.

What is the focus of BIS’ European Centers?

The European Centers will focus on decentralized finance, wholesale CBDCs, cybersecurity, and green finance.

What is DeFi?

Decentralized Finance (DeFi) is the hottest topic in the blockchain world at present, drawing attention from all quarters of the financial sector. It is a financial system built upon blockchain technology, providing decentralized and transparent financial services.

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