BIS Used Ethereum Testnet And Curve Finance’s Code In CBDC Pilot



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Developer Reveals Bank of International Settlements Used ethereum Sepolia Testnet and Curve Finance Code for CBDC Pilot

A developer has recently disclosed that the Bank of International Settlements (BIS) utilized the ethereum Sepolia testnet and Curve Finance’s smart contracts as the foundation for Project Mariana, its Central Bank Digital Currency (CBDC) pilot. This revelation follows BIS chief Agustin Carstens’ statements highlighting the necessity for countries to establish legal frameworks for CBDCs.

Project Mariana Successfully Implements ethereum Testnet and Curve Finance Code

Project Mariana was designed with the objective of exploring the integration of CBDCs to improve the efficiency and security of cross-border payments. The Bank of France has officially affirmed the successful completion of the project.

“The Bank for International Settlements (BIS) and the central banks of France, Singapore, and Switzerland have successfully concluded Project Mariana. The project tested the cross-border trading and settlement of wholesale central bank digital currencies (wCBDCs) between financial institutions, using new decentralized finance (DeFi) technology concepts on a public blockchain.”

Upon the project’s completion, it has been revealed that the Bank of International Settlements utilized ethereum‘s Sepolia testnet and Curve Finance’s smart contracts as the underlying framework for the pilot. Both were employed to evaluate the effectiveness of the cross-border forex automated market maker pilot.

“Bank of International Settlements uses public @ethereum Sepolia testnet blockchain and @CurveFinance smart contracts for their cross-border FX AMM pilot. Although BIS goes to great lengths to avoid mentioning Curve by name, based on function signatures, BIS is using the @vyperlang source code for their pilot.”

The successful implementation of Project Mariana followed remarks made by the general manager for the Bank of International Settlements, Agustin Carstens, underlining the requirement for countries to establish legal frameworks to facilitate the deployment of CBDCs. In a paper released by the International Monetary Fund (IMF), it was revealed that approximately 80% of banks are currently prohibited from issuing CBDCs due to existing laws, or lack clear legal structures on the matter.

“This needs to be rectified. The public rightly demands forms of money that meet their needs and expectations. It is simply unacceptable that unclear or outdated legal frameworks could hinder their deployment. The work to address these issues needs to begin in earnest. And it needs to proceed at pace.”

BIS Maintains Secrecy Regarding Curve Finance’s Involvement

Despite heavily relying on Curve Finance’s code, the Bank of International Settlements sought to keep the utilization of Curve’s framework undisclosed. To date, there have been no statements from core developers at Curve Finance or ethereum regarding the utilization of decentralized finance (DeFi) code and architecture for Project Mariana. Considering Curve Finance’s expertise in facilitating stablecoin movement and swapping, their knowledge could have been immensely valuable to the project.

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Curve Finance is a decentralized exchange that allows for the trading of stablecoins and tokenized fiat currencies issued privately by entities like Tether Holdings and Circle. Curve operates using an automated market maker model, ensuring liquidity with minimal slippage for price discovery. Project Mariana, which involved collaboration between various central banks, including the Bank of France and the Swiss National Bank, leveraged Curve’s architecture for similar objectives: access to greater liquidity and price discovery.

Notably, the specific version of Vyper used to code smart contracts in Project Mariana remains unknown. Curve Finance had experienced a significant exploit in July, resulting in a loss of approximately $60 million. Analysis of the attack revealed a vulnerability in older versions of Vyper, which the hacker exploited through a re-entrancy attack.

Republican Support for Anti-CBDC Bill

While the Bank of International Settlements urged central banks to establish frameworks for CBDCs, an anti-CBDC bill, known as the CBDC Anti-Surveillance State Act, has recently been under consideration by the House Financial Services Committee. The bill, proposed by Congressman Tom Emmer, would prohibit the Federal Reserve from issuing a digital version of the dollar. Currently, the House of Representatives has yet to vote on the bill.

If approved and adopted, the bill would receive support from Republicans but fierce opposition from Democrats. Supporters argue that CBDCs grant governments excessive power and infringe on privacy rights.



### News source: cryptodaily.co.uk

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