Circle responds to the International Settlement Bank blockchain project Agorá, cooperating with seven central banks to simplify cross-border payment processes.

The stablecoin issuer Circle has announced that it has submitted to participate in Project Agorá led by the Bank for International Settlements (BIS). They hope to collaborate with seven major central banks on a "public-private partnership programmable core financial platform" based on a unified ledger to simplify cross-border payment processes, improve efficiency, and reduce systemic risks.

Project Agorá

The Agorá project is an initiative launched by the Bank for International Settlements (BIS) and the Institute of International Finance (IIF), with a team that includes leaders from the European Central Bank, Bank of Japan, Bank of Korea, Bank of Mexico, Swiss National Bank, Bank of England, and the Federal Reserve Bank of New York. The name Agorá is inspired by the bustling markets of ancient Greece, symbolizing the ambition to become a new center for financial exchange.

The project is built on the concept of a unified ledger proposed by the BIS, aiming to merge tokenized commercial bank deposits with wholesale central bank money, creating an innovative and inclusive digital architecture. This "public-private programmable core financial platform" not only has the potential to change the rules of the game, simplify operations, and introduce smart contracts into the mainstream, making financial transactions smarter, faster, and more efficient.

Project Agorá Seeks Participation from Private Sector

Project Agorá recently announced its call for participation from the private sector, aiming to address current payment challenges, especially in cross-border payments, through the collaborative efforts of public and private partners. Cross-border payments face challenges such as different legal, regulatory, and technical requirements, operational hours, and time zone differences. Additionally, the complexity of implementing financial integrity controls such as anti-money laundering and customer verification increases, as in the existing financial architecture, the same transaction often goes through multiple intermediaries. Project Agorá aims to improve these situations through the "public-private programmable core financial platform."

Circle Submits Official Application

Circle has stated that as a strong supporter of public-private sector collaboration, Circle has submitted an application to participate in Project Agorá, eager to bring its wealth of experience and knowledge to the table, especially in the tokenized cross-border payment field.

Circle believes that both banks and non-bank institutions should engage in fair competition in public sector-led innovation projects, leveraging the necessary expertise and experience to address key challenges of financial innovation and reduce systemic risks.

Being at the forefront of payments, digital currencies, and tokenization innovation, Circle focuses on harnessing the power of stablecoins for various applications. Circle sees the breakthrough of blockchain as a unique opportunity to create a digitally connected global financial system and upgrade the existing decades-old, fragmented settlement systems using the speed, scale, and cost advantages of the internet. Circle is excited to be a participant in this project.