Central Banks Are Testing Curve AMM Technologies for CBDCs
The BIS Innovation Hub, working in collaboration with the central banks of France, Switzerland, and Singapore, have initiated Project Mariana with the aim of testing the Curve v2 hybrid automatic market maker function for wholesale CBDC pool operations.
While the Choice of Curve v2 was solely for experimental purposes, the initiative considered the integration of traditionally finanical (TradFi) and decentralized financial systems (DeFi), as well as liquidity pools and token bonding curve, credit and settlement risks, interoperability of tokenized foreign currency trading, and technical specifications.
Central banks are proposed to act as issue managers and bridge operators of the system, while commercial banks would form the liquidity pool of the platform.
Project Mariana’s results will be published at the end of the year, while earlier this June, the MAS presented a report with results of the investigations from Project Guardian, which was conducted with the BIS to look into the conformity of tokenization and DeFI with international requirements.
