The race between decentralized cryptocurrencies like Bitcoin and government-backed digital currencies continues to intensify. As nations explore the future of money, central banks are stepping up cross-border collaboration to develop next-generation financial infrastructure. At the forefront of this movement is the Bank for International Settlements (BIS) Innovation Hub, which has launched a groundbreaking initiative involving four national central banks to test a shared platform for multiple central bank digital currencies (CBDCs).
This project, known as Dunbar, aims to revolutionize international payments by enabling direct transactions between financial institutions using digital currencies issued by different central banks—eliminating reliance on intermediaries, reducing costs, and accelerating settlement times.
The Dunbar Project: A New Era in Cross-Border Payments
Led by the BIS Innovation Hub in Singapore, the Dunbar project brings together the Reserve Bank of Australia, Bank Negara Malaysia, Monetary Authority of Singapore, and South African Reserve Bank. Together, they are developing a shared technical prototype that supports cross-border transactions using multiple CBDCs on a unified platform.
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Unlike traditional international payment systems that rely on correspondent banking networks—a slow and costly process—the Dunbar platform leverages distributed ledger technology (DLT) to allow institutions to transact directly. This shift could significantly streamline global settlements, particularly for emerging economies seeking faster and more inclusive access to international finance.
According to the BIS, the project will focus on designing solutions for the international use of CBDCs, aligning with the G20’s roadmap to improve cross-border payments. By creating a shared infrastructure, participating central banks aim to overcome current inefficiencies such as high fees, delays, and limited transparency.
Collaborative Design and Technical Development
The development process involves building technology prototypes across multiple DLT platforms, ensuring flexibility and interoperability. The BIS Innovation Hub is working closely with technical partners to assess various architectural models, governance frameworks, and operational designs.
This collaborative approach allows central banks from diverse regulatory and economic environments to learn from each other while incorporating insights from both public and private sector experts. As Andrew McCormack, Head of the BIS Innovation Hub Singapore, stated:
“Dunbar brings together central banks with deep experience in digital currency projects and ecosystem partners at the forefront of technological development. We believe this effort will open new frontiers in digital currency experimentation and lay the foundation for interconnected global payment systems.”
Fraziali Ismail, Assistant Governor of Bank Negara Malaysia, emphasized the importance of public-private cooperation:
“We hope this project will drive greater collaboration between sectors to achieve fast, frictionless cross-border payments.”
Why Shared Infrastructure Matters
One of the key challenges in scaling CBDCs globally is fragmentation. If each country builds its own isolated digital currency system, cross-border compatibility becomes difficult. The Dunbar project addresses this by pioneering a shared platform model, where multiple CBDCs can coexist and interact seamlessly.
This approach reduces duplication of effort and promotes standardization—critical steps toward building a resilient, inclusive, and efficient global financial network. It also supports financial inclusion by giving smaller or developing economies access to advanced payment infrastructure without having to build everything from scratch.
Timeline and Expected Outcomes
The BIS plans to release the final results of the Dunbar project in early 2025, providing valuable insights into the feasibility and design of multi-CBDC platforms. A working prototype will be showcased during the Singapore FinTech Festival in November 2025—an event that draws global attention from regulators, technologists, and financial institutions.
These findings are expected to inform future policy decisions and technical standards for international CBDC deployment, potentially shaping the next generation of global payment systems.
Global Momentum Behind CBDC Development
While Dunbar focuses on multilateral cooperation, other countries are advancing their own digital currency initiatives. In June 2025, the Bank of France and Swiss National Bank announced a joint experiment on wholesale CBDCs (wCBDC) for cross-border settlements, conducted in partnership with Accenture and private financial institutions.
Similarly, the European Central Bank entered the investigation phase for the digital euro in July 2025—an 24-month process expected to evaluate design options, privacy features, and integration with existing financial systems.
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Meanwhile, El Salvador continues to push the boundaries of cryptocurrency adoption. On September 1, 2025, its government announced a partnership with Koibanx—a Latin American firm specializing in asset tokenization and blockchain financial infrastructure—to develop a national blockchain system based on the Algorand network. The goal is to establish a robust digital foundation that supports Bitcoin as legal tender by year-end.
Key Differences: CBDCs vs. Cryptocurrencies
Despite growing interest in Bitcoin and other decentralized assets, central banks emphasize that official digital currencies serve distinct policy objectives. While cryptocurrencies operate outside traditional financial controls, CBDCs are designed to enhance monetary sovereignty, ensure financial stability, and improve payment efficiency—all under regulatory oversight.
The BIS has repeatedly stressed that international cooperation in CBDC design is essential for maximizing benefits while mitigating risks such as currency substitution and capital flow volatility.
Core Keywords
- Central Bank Digital Currency (CBDC)
- Multi-CBDC Platform
- Dunbar Project
- Cross-Border Payments
- Distributed Ledger Technology (DLT)
- International Settlement
- BIS Innovation Hub
- Digital Currency Infrastructure
Frequently Asked Questions (FAQ)
Q: What is the Dunbar project?
A: The Dunbar project is an initiative led by the BIS Innovation Hub in collaboration with four central banks—Australia, Malaysia, Singapore, and South Africa—to develop a shared platform for cross-border transactions using multiple central bank digital currencies (CBDCs).
Q: How does Dunbar differ from existing international payment systems?
A: Unlike traditional systems that depend on intermediaries like correspondent banks, Dunbar enables direct peer-to-peer transactions between institutions using CBDCs on a distributed ledger, reducing costs and settlement time.
Q: When will the results of the Dunbar project be released?
A: The final outcomes are expected to be published in early 2025, with a technical prototype demonstrated at the Singapore FinTech Festival in November 2025.
Q: Can individuals use the Dunbar platform?
A: No—Dunbar focuses on wholesale-level transactions between financial institutions. It does not involve retail CBDCs intended for public use.
Q: Is Dunbar building a single global digital currency?
A: No. The project does not create one unified currency but rather a platform where multiple national CBDCs can operate together for international settlements.
Q: Why is international cooperation important for CBDC development?
A: Collaboration ensures interoperability, avoids fragmentation, enhances security, and supports inclusive access to modern financial infrastructure—especially for developing economies.
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The Dunbar project represents a pivotal step toward reimagining how money moves across borders. As central banks increasingly embrace digital transformation, initiatives like this underscore a collective vision: a faster, cheaper, and more inclusive global financial system powered by trusted, interoperable digital currencies.