BOK joins project exploring use of tokenisation to improve cross-border payments

Seven other central banks globally have joined the project.

South Korea’s central bank has joined seven other central banks globally to explore the use of tokenised commercial bank deposits and wholesale central bank money in cross-border payments, reports Yonhap News Agency, based on an announcement.

Under Project Agora, the Bank of Korea (BOK) will reportedly team up with the Bank for International Settlements, the Bank of France, Bank of Japan, Swiss National Bank, Bank of England and the Federal Reserve Bank of New York. 

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The seven central banks and BIS will work in partnership with private financial firms convened by the Institute of International Finance.

The project will explore the use of tokenisation to increase the speed and integrity of international payments whilst lowering costs. 

Participants will reportedly explore the creation of a new common payment infrastructure that could make the system work more efficiently together on a digital core financial infrastructure, according to the BOK.