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The United States bank for international payments will test the implementation of DEFI in all CBDC foreign exchange markets

December 5, 2022

For the first time, this centralized financial institution stated that automatic market-making technology will serve as the basis for creating a new financial structure.

According to the announcement that was made on November 20, 2022, the bank for international payments BIS, which was joined by the central banks of France, the central bank Singapore, and the central bank of Switzerland will all come together to be part of the implementation of a new initiative called the Mariana project; who is exploring Blockchain technology, This project is aimed at making use of decentralized finance protocols or also called DEFI with what is wanted to automate the markets and expedite the settlement of currencies.

For the execution of these activities, the use of DEFI protocols is included, with this it is generated to stimulate hypothetical exchanges in transactions between the Swiss franc, the euro, and the dollar, the currencies of the international central bank.

The technologies used for the construction of the Mariana Project include some smart contracts, as well as some protocols for the creation of automated markets or AMM. Researchers are looking for a way to achieve the combination of AMM liquidity with innovative algorithms to stabilize and determine the price of all tokenized currencies.

As the representative of the organization created by the different central banks to control the framework of international finance, IBIS determined that the protocols used by AMM could undoubtedly form the new bases for the creation of new financial infrastructures which can reach facilitate the exchange of currencies between all international banks, thereby providing agility in the processes of payment gateways.

Thanks to this project, seeks to break all borders by incorporating most of the promising ideas of the DEFI system. The Mariana Project marks the first union between innovation and economy in the search for the exchange of currency markets.

The IBIS and all the collaborating banks set a tentative date which was set for June 2023 to deliver the proof of concept of the progress of the project, it turns out that in the past this financial institution was very skeptical regarding digital assets, due to the recurring variation in their prices and the lack of a regulatory framework for these currencies.

More than 16 people were arrested in South Korea for transactions made with cryptographic currencies, and according to the authorities, more than 2 trillion dollars were transferred.

According to the reports revealed by the authorities, more than 285 million dollars in cryptocurrency currencies were transferred through illegal remittance agencies; As a result of the foregoing, the customs authorities are going to prosecute two subjects who were arrested as the possible perpetrators of said currency movements and who will have to answer for said illegal transactions.

Most of the transactions were made by different illegal remittance agencies charging these individuals for foreign exchange transactions law outside of South Korea.

At the beginning of November, South Korea, through its financial intelligence unit, took action against some providers of digital services or virtual assets, among them we can find the Exchanges Kucoin, Poloniex, Phemex, the Korean entities that argued that transactions were carried out.

without prior regulation and that as a consequence of the preceding several fines and even prison sentences will be imposed. These actions are aimed at those of the National Assembly which has several laws in a project that intend to affect the trade of cryptoactives and Blockchain blockchains.

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