CBDC inquiry has been appear as a top priority for the Bank for International Settlements' Innovation Hub, or BISIH, in 2021.

According to its annual piece of work programme, BISIH, plans to "explore the feasibility of faster and cheaper cantankerous-border payments" using central bank digital currencies. BISIH also stated information technology volition explore prototypes of "tiered retail CBDC distribution architectures" and distributed ledgers to issue "tokenized dark-green bonds to retail investors."

The BIS initiatives will be driven by the Innovation Hub Centres in Hong Kong, Singapore, and Switzerland — which have been established in conjunction with local central banks.

The BISIH center in Singapore has been tasked with building an "international settlement platform" on which regulated banks and payment firms can settle transactions using different CBDCs.

The Hong Kong center will work on the green bond tokenization projection, in improver to building a span to facilitate foreign exchange transactions using CBDCs, and exploring different models for stablecoin issuance.

BISIH's Swiss middle has already completed ii proofs-of-concept linking existing payment systems to trial settling tokenized avails using wholesale CBDC through its "Project Helvetia" initiative.

BISIH caput, Benoît Cœuré, said:

"This work programme shows our delivery to exploring in the near practical ways how best to harness technological change for the benefit of cardinal banks and create public goods to back up the global financial system."

In Nov, BIS recommended "embedded" reporting requirements for prospective stablecoin issuers, advocating for automated data sharing processes between issuers and regulators.