BIS readies for live implementation of Project Nexus in Asia
Project Nexus, an initiative headed by the Bank for International Settlements Innovation Hub (BISIH) to enhance cross-border payments by connecting multiple domestic instant payment systems (IPS) globally, has delivered a “comprehensive blueprint” during its third phase of development, readying the way for a live implementation.
Project Nexus by BIS readies to go live in Asia
The arrival of the blueprint will guide the project into its next phase of development, the implementation and roll-out phase, which is set to engage central banks and IPS operators from India, Malaysia, the Philippines, Singapore and Thailand.
Here, Bank Negara Malaysia, Bangko Sentral ng Pilipinas, the Monetary Authority of Singapore (MAS), Bank of Thailand, Bank Indonesia (as a special observer), the Reserve Bank of India and select domestic IPS operators will work to establish a new entity called the Nexus Scheme Organisation (NSO).
The NSO – to be wholly owned by the central bank and IPS cohort dependent on specific domestic structures, with BISIH to maintain a technical advisory role through its centre in Singapore – will be responsible for the management of Nexus. This designation places the project as one of the first developed by BISIH in the payments space to move towards a live implementation together with instant payment providers.
“Even with just the first wave of connected countries, Nexus has the potential to connect a market of 1.7 billion people globally, allowing them to make instant payments to each other easily and cheaply,” comments BIS general manager, Agustín Carstens.
“When implemented, it will greatly enhance cross-border payments in line with both the G20 cross-border payments programme and our mission to develop public goods in the technology space to support central banks and improve the functioning of the financial system,” Carstens adds.
BISIH continues to explore the latest technological innovations in its pursuit of swifter settlements for cross-border transactions, as evidenced by its launch of Project Agorá in April. The project is currently engaging with a range of central banks and private sector participants to explore the application of tokenisation in enhancing the efficiency and speed of cross-border settlements.
