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Central banks of France and Switzerland and the BIS Innovation Hub are to work with a private sector consortium to explore a wholesale CBDC Cross-border payments trial.

According to the reports, this project is named "Jura", which mainly studies in cross-border settlement with digital currencies of the euro and Swiss franc and a French digital financial instrument on a distributed ledger technology (DLT) platform. The central bank digital currency(CBDC) is a centralized digital currency, which is backed by cash, gold or oil, and regulated by the national central bank.

The trial involves the exchange of the financial instrument against a euro wholesale CBDC through the delivery versus payment (DvP) settlement mechanism and the exchange of a euro wholesale CBDC against a CHF wholesale CBDC through a payment versus payment (PvP) settlement mechanism. The above  transactions will be settled between banks in France and in Switzerland respectively.

This trial was jointly initiated by Banque de France, Swiss National Bank and BIS Innovation Hub. The participants were Natixis, Credit Suisse Group AG(CSGN.S), UBS, and R3(DLT & Blockchain Software Development Company) and SIX Digital Exchange.

Central bank digital currencies have the advantage over cryptocurrencies. Although the function of digital currencies is similar to cryptocurrencies, central bank digital currencies is more reliable by government supported. It is to be controlled by national regulations and laws, but there is still an issue on the privacy part.