“`html
Zengo est de loin le meilleur portefeuille NFT et crypto. Outre le fait d’être un portefeuille non-dépositaire, il privilégie la sécurité des utilisateurs en proposant le MPC. Zengo se démarque aussi par son authentification à 3 facteurs. Sa fonctionnalité multi-chaînes le permet en même temps de prendre en charge divers actifs numériques dont les blockchains les plus populaires.
Hello to all fintech enthusiasts!Welcome to a world where financial innovation has never been more crucial.Today, we explore a major advance in managing financial commitments.
The Swiss National Bank, in partnership with the Bank for International Settlements (BIS) Innovation Hub and the World Bank, recently launched an innovative platform aimed at optimizing the management of financial commitments within Multilateral Development Banks (MDBs). This project, named Promissa, uses distributed ledger technology (DLT) to replace traditional paper promissory notes, automate manual processes, and reduce administrative costs.
For decades, institutions like the World Bank have relied on promissory notes to track and collect multiyear financial commitments from member countries. This process, while reliable, remains lengthy, complex, and often requires constant reconciliations. Project Promissa aims to address these operational challenges by integrating blockchain to simplify the life cycle of promissory notes from their issuance to payment and archiving.
Morten Bech, head of the Swiss Centre of the BIS Innovation Hub, stated: “Project Promissa perfectly illustrates how blockchain can serve the public good. Paper-based promissory notes, in place since the creation of the Bretton Woods institutions, have supported financing their activities worldwide. The digital solutions tested by Promissa represent a significant step towards the economic modernization of these processes.”
Jorge Familiar, Vice President and Treasurer of the World Bank, added: “Project Promissa is a forward-looking initiative that contributes to the G20’s vision for more effective multilateral development banks. The World Bank is proud to collaborate with the BIS Innovation Hub and the Swiss National Bank to shape practical solutions that foster transparency, trust, and scale in development finance.”
The DLT-based platform ensures that all participants have a single source of truth, enables multipart signatures, and maintains confidentiality while allowing each party to retain control over its own promissory notes. Seven countries participated in testing the proof of concept (PoC) and provided valuable feedback for future improvements, along with the International Monetary Fund’s Observatory.
The results, published in the final report, confirm that the platform is technically feasible and can be adapted to meet various requirements. Nevertheless, further developments are needed to make the platform fully operational, paving the way for more effective and innovative financial management within the MDBs.
The Swiss National Bank partners with prestigious institutions like the Bank for International Settlements Innovation Hub and the World Bank to explore the possibilities offered by blockchain in managing financial commitments of the multilateral development banks (MDBs). This innovative partnership aims to transform processes long based on traditional methods by adopting advanced digital solutions.
What are the objectives of the Promissa project?
The Promissa project aims to modernize the management of promissory notes within the MDBs by using distributed ledger technology (DLT). For decades, institutions such as the World Bank have relied on paper promissory notes to track and collect multiyear financial commitments from member countries. However, this traditional system is often slow, cumbersome, and requires constant reconciliation.
By integrating blockchain, the project aims to automate manual processes, reduce administrative costs, and improve overall efficiency of the promissory note life cycle, from issuance to payment and archiving. This digital transformation promises to simplify operations and enable more transparent and secure management of financial commitments.
How does blockchain improve the management of promissory notes?
Blockchain offers a robust solution to tokenize promissory notes, thus replacing paper documents with secure digital equivalents. This innovation allows for:
- Automating manual tasks through smart contracts, thereby reducing the risks of human errors and speeding up processes.
- Reducing administrative costs by eliminating the need for physical document management and optimizing financial operations.
- Ensuring transparency and traceability of transactions, providing a single source of truth for all stakeholders.
- Enhancing data security through the immutable nature of blockchain, thus protecting financial commitments against fraud.
These significant improvements aim to make the financial processes of the MDBs more efficient and responsive, thereby aligning practices with the modern demands for transparency and speed.
What benefits does the project bring to the MDBs?
The Promissa project offers several key advantages to the multilateral development banks:
- Reduction of administrative costs through the digitalization of promissory notes, allowing for more economical management of financial commitments.
- Improvement of operational efficiency by automating manual processes and reducing processing times.
- Increase in transparency and trust among member countries, thanks to a unique and verifiable data source.
- Strengthening the security of financial transactions, minimizing the risks of fraud and errors.
By adopting these innovations, the MDBs can better meet the complex needs of member countries and facilitate smoother and more effective collaboration in development projects.
What are experts’ feedback on this project?
Leading figures in the sector have expressed their enthusiastic support for this innovative project:
Morten Bech, head of the Swiss Centre of the BIS Innovation Hub, stated:
“Project Promissa is a clear example of how blockchain can be used for the public good. Paper-based promissory notes have been in place since the Bretton Woods institutions were established, helping finance their important activities worldwide. The digital solutions tested by Promissa represent a significant step forward in cost-effectively modernising these processes.”
Jorge Familiar, Vice President and Treasurer of the World Bank, added:
“Project Promissa is a forward-looking initiative that contributes to the G20’s vision of better, and more effective, multilateral development banks. The World Bank is proud to collaborate with the BIS Innovation Hub and the Swiss National Bank in shaping practical solutions that support transparency, trust, and scale in development finance.”
What were the results of the promising platform tests?
The DLT-based platform was tested by seven countries, providing valuable feedback for future improvements. The International Monetary Fund’s Observatory also oversaw the process, ensuring a rigorous and impartial evaluation of the platform’s performance.
The results, presented in the final report, confirm the technical feasibility of the solution and its capacity to be adapted to various specific needs of the MDBs. Nevertheless, it is recognized that further developments are necessary to make the platform fully operational and integrated into existing financial systems.
How does this innovation fit into the global fintech landscape?
The use of blockchain in the Promissa project perfectly aligns with the fintech boom related to cryptocurrencies and blockchain. Similar initiatives are emerging worldwide, such as in this context in Latin America and Africa, or in the fintech sector of Hong Kong, which has seen remarkable growth due to the adoption of blockchain.
These developments demonstrate the increasing importance of blockchain technology in the financial sector, not only for the internal operations of financial institutions but also for delivering innovative solutions that meet the diverse needs of global markets. To learn more about the fintech boom related to cryptocurrencies and blockchain, or about blockchain as the ideal solution to ensure sharia ethics, visit the dedicated articles.
What are the next steps for the Promissa project?
After successful testing phases, the Promissa project looks towards continuous development and full integration of the platform into the financial systems of MDBs. This includes:
- Refining features based on feedback from users and stakeholders.
- Expanding partnerships with other financial institutions and international organizations to strengthen the ecosystem.
- Enhancing the security and resilience of the platform to ensure smooth large-scale adoption.
- Training and raising awareness among end users to ensure a seamless transition to new digital processes.
These steps are crucial to ensure the long-term success of the project and to position the MDBs as leaders in the adoption of advanced financial technologies.
To stay updated on the latest news in the fintech sector, feel free to subscribe to our free newsletter and receive the hottest news in fintech in Switzerland directly in your inbox every month.
Also, discover how blockchain impacts the evolution of fintech and explore other revolutionary innovations on Please Fintech.
