Listen to the Artile: “Project Mariana” - France, Switzerland and Singapore Cook up Plans to Revolutionize FX Market

Decentralized finance (DeFi) constructs open, transparent, composable, and non-custodial financial systems using open blockchain networks and smart contracts. The decentralized trading of tokenized assets via so-called automated market makers?(AMMs) is currently one of the primary DeFi operations. The?AMMs?are?actually?a type of smart contract that, as opposed to the conventional method of matching buyers and sellers and requesting agreement for each activity, leverages liquidity pools to transfer digital assets automatically.

Central banks must comprehend how DeFi and its applications will affect international payments since they have the potential to become systemically significant components of the financial ecosystem.

Central Banks of France, Switzerland and Singapore Are Making Moves

In an effort to reduce the cost of international transfers, central banks from France, Switzerland, and Singapore are?working together to?automate?the foreign exchange?(forex)?markets.

Project Mariana, run by the Innovation Hub of the Bank for International Settlements (BIS), examines whether protocols employed in intermediary-free decentralized finance (DeFi) can take the place of more time-consuming, conventional methods for connecting buyers and sellers of various fiat currencies.

"DeFi and its applications have the potential to become systemically important parts of the financial ecosystem," the BIS said in a statement on its website. It added that "automated market makers can become the basis for a new generation of financial infrastructure".Read More Here