The Banking company for International Settlements (BIS) has published a report touting the benefits of central banking company digital currencies (CBDC), especially in reducing the cost of cross-border payments.

According to the report titled "Inthanon-LionRock to mBridge: Edifice a multi CBDC platform for international payments" published on Tuesday, CBDCs can reduce the transaction throughput of cross-border payments from 3 to five business days to only a few seconds.

The stated claim is role of the conclusions drawn from phase two of Projection Inthanon-LionRock involving the central banks of Prc, the United Arab Emirates and the Hong Kong Monetary Say-so.

"The epitome demonstrates a substantial increase in cross-border transfer speed from days to seconds, as well as the potential to reduce several of the core cost components of correspondent banking," the report stated.

Equally stated in the study, a PricewaterhouseCoopers approximate based on the results of the phase two prototype showed a possible 50% reduction in the cost of cross-border payments.

The BIS study likewise stated that the speed and cost benefits of CBDCs can even exist more significant among jurisdictions where robust correspondent banking relationships are non-existent.

With stage two completed, the project now dubbed "mCBDC Bridge" will motility into the third phase, which volition involve farther pilot studies as well as the creation of a possible roadmap for large-scale testing.

Related: IMF, Earth Banking company and BIS champion cardinal bank digital currencies at G20

The mCBDC Bridge project is i of many multi-central bank digital currency projects as the emphasis appears to be shifting toward more collaboration in the area of national digital currencies.

As previously reported by Cointelegraph, Australia, Malaysia, Singapore and Southward Africa recently announced a joint CBDC initiative.

These collaborative efforts are also being championed by entities such as the BIS and the International Monetary Fund as beingness more than advantageous to the current fiscal landscape, specially amid the growing popularity of cryptocurrencies.

Indeed, the BIS has consistently advocated for CBDCs as a countermeasure to the proliferation of crypto and stablecoins in global payments.