Miguel Diaz Diaz, Head of the BIS Innovation Hub Toronto Centre, presented 𝐏𝐫𝐨𝐣𝐞𝐜𝐭 𝐅𝐮𝐒𝐒𝐄 (Fully Scalable Settlement Engine) at the BIS Innovation Summit 2024.
Diaz emphasized that FuSSE could significantly impact societies, especially those lacking basic infrastructure; for example, it could assist underdeveloped payment systems with advanced solutions, such as Nexus, for instant cross-border payments.
He highlighted three principles shaping their approach. First, demand for settlements within financial infrastructures is increasing due to growing financial inclusion and a transaction surge. Integrating IoT and AI will autonomously generate transactions, further escalating the demand.
Second, ensuring inclusivity in the digital economy is crucial for avoiding significant social issues. The design of the digital payment ecosystem should include everyone.
Third, jurisdictions must design market infrastructures to handle current and future transaction volumes and participants. Significant modifications are required to maintain efficiency and support economic decisions.
Diaz stated the challenge of developing and replacing complex financial infrastructures, which require high resilience due to their systemic importance. Smaller jurisdictions often need help in developing such solutions.
FuSSE's core objective is to develop backend technology that supports various assets and enhances different financial market infrastructures. Three main principles guide it: future-proofing, cybersecurity and resilience, and efficiency and sustainability.
Future-proofing requires a modular design with distributed technologies, allowing scalability and integration with various systems, such as RTGS, CBDC, or security settlement systems. Using resilient, distributed technologies ensures that the system can evolve with new technologies and functional requirements.
FuSSE ensures secure and reliable information with quantum-resistant technologies and crypto-agility.
FuSSE promotes efficiency, sustainability, and community collaboration through open-source elements. It aims to be a public good and encourages contributions from different jurisdictions to foster shared development.
FuSSE's quantum-resistant signature processes are ready. The full cryptographic suite, including encryption and verification, is expected by Q1 2025.
𝐂𝐨𝐧𝐜𝐥𝐮𝐬𝐢𝐨𝐧
FuSSE aims to create scalable, resilient, and inclusive financial infrastructures that are future-proof and sustainable. Community collaboration and open-source approaches are essential for its success and widespread adoption. Diaz's presentation highlights FuSSE's critical role in supporting jurisdictions in developing robust financial infrastructures and fostering a collaborative community among central banks.
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#foresight
#financialinclusion