A group of leading central banks and more than 40 major commercial banks are stepping up efforts to test one of the most closely watched global digital payments initiatives, as competition intensifies to modernise and shape the future of the international financial system.
The project, known as “Agora,” is led by the Bank for International Settlements and includes the Federal Reserve Bank of New York, along with major central banks from Europe, Korea, Mexico and Japan, whose currencies account for a large share of global payments.
Cross‑border transactions are currently carried out through a global network of commercial banks. However, these processes can be slow and costly, particularly when multiple banks are involved or when transactions include smaller currencies from emerging economies.
According to BIS Deputy General Manager Andrea Maechler, the latest round of testing demonstrated the feasibility of using tokenised central bank reserves, effectively digital versions of national currencies, alongside tokenised deposits from commercial banks.
Global authorities have long sought to make international payments faster and cheaper, with the Group of Twenty listing the issue among its key priorities. Maechler noted that while the Agora project is not yet ready for deployment, further testing and development are planned, with the Bank of Canada also expected to participate.
She added that one of the key advantages of such systems is the potential shift towards continuous, round‑the‑clock payment processing, enabling transactions to take place at any time.
Although not a direct competitor, Agora is often compared with another digital payments initiative, known as mBridge, which involves China and several other countries, including Hong Kong, Thailand, the United Arab Emirates and Saudi Arabia.
At the same time, India’s central bank has proposed that BRICS countries develop plans to link their digital currencies, reflecting broader efforts to reshape the global payments landscape.
Officials said the Agora project represents a milestone, demonstrating that tokenised payments can be carried out at scale, though further work will be required before the system becomes fully operational.
