R3 for central banks

Define the paradigm shift across the payments landscape

By playing a pivotal role in furthering the development and use of central bank digital currencies (CBDCs) as a secure and reliable payments instrument–central banks can not only capitalize on their benefits, but ensure they maintain monetary policy and financial stability in their region.

A more resilient financial system

Rewrite the future of money with CBDCs

Today, individuals and institutions primarily settle payments in bank deposits, placing a high concentration of liquidity and credit risk in both payment systems and the world’s largest banks. Central bank digital currencies (CBDC) can deliver a more efficient, faster and safer financial system by providing another alternative to cash and bank deposits.

PRIMARY CBDC DISTRIBUTIONS

Transform the payments landscape

Wholesale payments

A wholesale CBDC can serve as a risk-free settlement cash asset in high-value payments systems and on digital financial markets infrastructures. It can automate processes with smart contract capabilities and direct transit between commercial banks without intermediaries.

Retail payments

A general purpose CBDC for retail applications enables person-to-person transfers with instantaneous settlement. They are particularly valuable for emerging economies as they broaden access to financial services.

Cross-border payments

Settling cross-border payments using CBDCs can avoid delays and costs associated with processing through a correspondent banking network.

Offline payments

A token-based CBDC can be designed for use in areas with limited internet access to allow people to access a medium of exchange and basic financial services regardless of geolocation.

LEADER IN DIGITAL CURRENCIES

R3 has been at the forefront of CBDC innovation since 2016

Explore past and present CBDC projects that address delivery versus payment (DvP), payment versus payment (PvP), cross-border payments, interoperability, de-centralized netting and more on the Digital Currencies Hub.

SUCCESS STORY

Project Dunbar–using CBDCs for international settlements

Project Dunbar is just one of the many projects R3 has participated in over the years. It brought together the Reserve Bank of Australia, Bank Negara Malaysia, Monetary Authority of Singapore, and South African Reserve Bank with the Bank for International Settlements Innovation Hub to test the use of CBDCs for international settlements.

POWERED BY CORDA

The CBDC Accelerator

The CBDC Accelerator, powered by Corda, maps to every stage of your CBDC journey—from exploration to advanced building.

Why central banks choose Corda

A platform that
grows with you

Experiment with CBDCs in an R3-managed sandbox, then move to pilots and projects in one’s own environment, and eventually issue, distribute, and exchange a CBDC in production.

Secure peer-to-peer
transactions

With Corda, central banks can claim custody and move digital currencies directly, securely and privately between entities and across borders to meet their own capital and liquidity needs.

Open source enterprise-grade code

Open source blockchain platforms are a key requirement for central banks and that’s why we provide the Enterprise Edition of Corda source code for experimentation in local environments and beyond.

Interoperability

The CBDC Accelerator is interoperable between Corda business networks, to public DLT networks, as well as traditional RTGS systems that follow ISO 20022 standards.

Private
transaction history

All CBDC transaction history between entities can also be kept private by leveraging Conclave, R3’s leading confidential computing platform.

‘Last mile’ infrastructures and networks

Users can plug into a simulated ecosystem of ‘last mile’ payment networks and infrastructures in a sandbox environment then transition to the real-world once in production.

REWRITE THE FUTURE OF MONEY

CBDCs deliver market efficiency and transparency

Digitize traditional assets

Securities can be converted into digital tokens, then traded and serviced with stablecoins and CBDCs to support fractional ownership and more transparent price discovery of asset classes.

Liquidity management

Automate a liquidity pool by utilizing smart contracts to improve FX liquidity, act as the intermediary of currency exchange rates and reduce the number of intermediaries.

Atomic DvP (Delivery versus Payment)

Issuance and redemption of wholesale CBDCs can reduce counterparty liquidity and settlement risk, enable programmable business logic with smart contracts and extend resiliency.

Who trusts R3 and Corda to accelerate their journey to CBDCs?

Your Trusted Partner From End-to-end

Expert services and support

R3 is here to support you at every stage of your digital currency journey–from experimentation to production. Our Professional Services team offers a variety of standard and custom SaaS offerings to kick-start issuance and development.

Contact us

Learn how R3 can help central banks.

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