The INX Digital Company (NEO: INXD) has announced a “non-binding memorandum of understanding” (MoU) with Switzerland-based SICPA. According to a release, the MoU is a step towards partnering on a blockchain solution to enable central bank digital currencies (CBDCs).
INX is a digital asset trading platform that pursued a token offering raising USD $83 million. In early 2022, INX listed its shares on the Neo Exchange in Canada.
SIPCA is a provider of security inks and identification, traceability and authentication technologies, serving governments.
The planned joint venture with SICPA is described as an “integral part of INX’s vision to innovate the future of finance and pioneer the new digital economy.”
Under the terms of the MOU, INX is expected to work with SICPA to establish a blockchain solution for CBDCs. Founded in 1927, SICPA has an established relationship with various governments that issue fiat and holds expertise in identification and security solutions. The JV between INX and SICPA aims to allow governments to expand their access to payments infrastructure, facilitate cross-border payments, maintain sovereign currency control through rigorous regulation, and introduce privacy and safety measures.
Philippe Amon, CEO and Chairman of SICPA, said their ambition is to develop a CBDC solution that is complementary to cash:
“We look forward to collaborating with INX and leveraging our extensive experience in working with central banks to develop a relevant CBDC solution.”
Shy Datika, CEO of INX’s, said they have committed to working with regulators.
“INX is the first company in the world to launch and close on an SEC-registered IPO of a blockchain digital security. Our very own INX token is the working use case for automated KYC, whitelisting of wallets, programmable smart contracts, mass distribution, and unparalleled traceability and visibility on the blockchain. These attributes are mandatory when discussing the CBDC ecosystem and will be incorporated in the innovative solution we are now developing.”
While many central governments are reviewing the efficacy of CBDCs it is not clear as to what form digital currencies will take. China is testing a digital yuan. The US government, as well as the European Union, are reviewing the potential as well as risks of digital curency.
