Home Technology FIS Global to Launch CBDC Virtual Lab, to Support 1 Million Transactions Per Second

FIS Global to Launch CBDC Virtual Lab, to Support 1 Million Transactions Per Second

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FIS Global to Launch CBDC Virtual Lab, to Support 1 Million Transactions Per Second

FIS, a New York Stock Exchange (NYSE) listed company and technology solutions provider for financial institutions worldwide, has launched its latest solution for central bank digital currency (CBDC). It is called “RealNet Central” and is a central infrastructure payment solution for CBDC transactions.

Regarding the rationale for launching such a solution, FIS said that with the increase in real-time payments, many countries “need to either modernize their outdated payment infrastructure or build entirely new payment networks. in real time to move money faster”.

A central bank digital currency is a digital currency issued by the government of a country, the records of which will be kept using Blockchain or similar distributed ledger technology (DLT).

Unlike other privately issued tokens on Blockchain, a CBDC will be entirely centralized and under full government control. In January of this year, the Reserve Bank of India (RBI) has formed a fintech department to study the feasibility of a CBDC, among other tasks.

According to a FIS report, entitled Global Payments 2022 Report, 72% of the world’s population already has or will soon have access to instant payments.

The report further indicates that many international markets, such as Brazil, UK, Japan, South Africa, Mexico and others are replacing or renovating their established real-time payment services. India and the United States are also introducing additional competing services that will complement already established programs, according to the report.

Aman Cheema, Head of Real-Time Global Payments and CBDCs at FIS, said: “The global economy has rapidly shifted towards digital-first mindsets and ways. While the idea of ​​making real-time payments may seem simple, the reality of delivering on this promise is extremely sophisticated, especially when done across borders.

What will RealNet Central do?

FIS said RealNet Central will seek to accelerate the adoption of real-time payments by connecting businesses, consumers, financial institutions and government organizations to real-time networks, both domestically and internationally.

The CBDC Virtual Lab, which is being created in collaboration with M10 Networks, will help central banks launch CBDC in their economy, FIS said.

This new CBDC virtual lab allows “central banks, commercial banks and other financial players to experiment and pilot the basic concepts of issuing, transferring, redeeming, offline payments, programmable payments, payments retail, wholesale and cross-border,” FIS said in The Release.

Regarding the technology behind this lab, FIS said that the virtual lab is built using enterprise-grade technology and supports over one million transactions per second with lower latency. one second away.

“Our latest offering aims to change that, bringing consumers, businesses, financial institutions and governments together in the payments ecosystem,” Cheema added.

For the uninitiated, latency means the time it takes for computer data to travel between sender and receiver. Think of it like sending a message to someone far away from your location. So latency is how long it will take for that message to be delivered to that other person from your computer.

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