The Bank for International Settlements (BIS) alongside seven prominent central banks has launched Project Agorá, a visionary endeavor aimed at incorporating tokenisation into the global financial infrastructure, signaling a significant shift towards the digitisation of financial systems.

Through Project Agorá, central banks from France, Japan, Korea, Mexico, Switserland, England, and the Federal Reserve Bank of New York are collaborating to merge tokenised commercial and central bank funds on a unified ledger, addressing key challenges in cross-border payments.

The initiative targets the reduction of longstanding inefficiencies in international transactions, tackling issues such as regulatory divergence, technical incompatibilities, and operational hurdles due to differing time zones, through the use of a unified tokenisation platform.

By leveraging smart contracts, Project Agorá aims to simplify financial integrity measures like anti-money laundering (AML) and customer verification processes, which are often hampered by the involvement of multiple intermediaries, thus enhancing overall transactional efficiency.