The Bank for International Settlements (BIS) has recently introduced Project Rialto, an innovative initiative aimed at revolutionizing traditional cross-border payments. The main objective of this project is to enhance the efficiency of instant cross-border payments by integrating a modular foreign exchange (FX) element with settlement in wholesale central bank digital currencies (CBDCs). In order to tackle the current challenges of expensive, sluggish, and intricate FX services, Project Rialto is a collaborative effort between the BIS Innovation Hub Eurosystem, the Singapore Centres, and various central banks. By exploring decentralized solutions, CBDC technology, and interconnected payment infrastructures, Project Rialto aims to alleviate liquidity, credit, and settlement risks. The project’s name, Rialto, is symbolic of the iconic bridge and marketplace in Venice, representing the cross-border payment infrastructure and the automatic FX settlement using wholesale CBDCs, respectively.
