The Bank of International Settlements (BIS), in collaboration with the Bank of Canada (BOC), has inaugurated a new innovation hub in Toronto. This strategic initiative aims to drive technological advancements in the financial sector to enhance inclusivity and efficiency.
Focus of the Toronto Innovation Centre
Announced on June 13, the BIS Toronto Innovation Centre will focus on three of BIS’s six priority themes:
- Open Finance
- Innovation for Regulatory and Supervisory Purposes
- Next-Generation Financial Market Infrastructures
The other three priority themes, which include central bank digital currencies (CBDCs), green finance, and cybersecurity, will also be areas of interest but are not the primary focus of this hub.
Goals and Impact
The Toronto hub will collaborate with stakeholders in Canada, Latin America, and the Caribbean. Bank of Canada Governor Tiff Macklem emphasized the importance of innovation in the evolving financial sector. He stated, “As the financial sector continues to evolve, we need to innovate in different areas and apply skills that aren’t traditionally associated with central banking. By doing so, Canadians can share in the benefits of innovation.”
BIS General Manager Agustín Carstens highlighted the significance of the new hub as a milestone in BIS’s efforts to modernize the financial system. Carstens expressed enthusiasm about the collaboration, stating, “We are looking forward to collaborating with the Bank of Canada and other central banks to foster a more modern, efficient and inclusive financial system.”
BIS’s Broader Work on CBDCs and Tokenization
The inauguration of the Toronto hub aligns with BIS’s broader initiatives in the financial technology space. In January, BIS outlined its 2024 work program, which includes significant projects such as the second phase of CBDC privacy testing and a blockchain-based tokenization project.
In April, BIS announced a major collaboration with central banks from France, Japan, South Korea, Mexico, Switzerland, the United Kingdom, and the United States. This initiative, known as “Project Agora,” aims to explore asset tokenization and develop a unified ledger that integrates wholesale central bank funds and tokenized commercial bank deposits.
