KUALA LUMPUR: Bank Negara Malaysia (BNM), in collaboration with the Bank for International Settlements (BIS) and four other central banks, is advancing Project Nexus to enhance the efficiency of instant payment systems (IPS) for seamless cross-border transactions globally, with full operation expected by 2027.
BIS is an international financial institution based in Switzerland.
Key participants in this phase include the BIS Innovation Hub (BISIH) and central banks from Malaysia, Singapore, Thailand, the Philippines and India.
BNM said that Project Nexus enables IPS networks, such as DuitNow, to connect seamlessly through a single, unified network.
"This innovation will allow users to transfer funds instantly and securely across borders using proxies such as mobile phone numbers," BNM said during a digital payments media workshop at Sasana Kijang here, today.
BNM said that Phase 3 of the project, which concludes this year, focused on transitioning to live implementation.
A comprehensive framework was developed during this phase, encompassing a governance roadmap, a revenue model and detailed technical specifications.
"Phase 4, which starts this year, involves operationalising the project for live usage. Immediate priorities include establishing the Nexus Scheme Owner (NSO) in Singapore to manage the system and developing the Nexus technology solution," it added. - Bernama
