Update June 14 10:35 am UTC: This article has been updated to clarify the focus of the BIS Toronto Innovation Centre.

The Bank of International Settlements (BIS) unveiled its new innovation hub in Canada in collaboration with the country’s central bank.

On June 13, the international financial institution and the Bank of Canada (BOC) announced the inauguration of the BIS Toronto Innovation Centre, which will help further the BIS Innovation Hub’s work. The Toronto hub will explore the development of new technologies to promote inclusivity and efficiency in the financial system.

The hub will focus on three of BIS' six priority themes: open finance, innovation for regulatory and supervisory purposes and next-generation financial market infrastructures. The other three BIS priority themes include central bank digital currencies (CBDCs), green finance and cybersecurity.

Financial innovation for Canada

The announcement highlighted that the new hub will work in Canada, Latin America and the Caribbean. Bank of Canada Governor Tiff Macklem said that the partnership between the hub and the central bank, with the BIS, is important to fostering innovation in the region. Macklem said:

“As the financial sector continues to evolve, we need to innovate in different areas and apply skills that aren’t traditionally associated with central banking. By doing so, Canadians can share in the benefits of innovation.”

Meanwhile, BIS General Manager Agustín Carstens said the inauguration of the hub is “an important milestone” in the BIS’s efforts to build the future’s financial system. The official expressed enthusiasm about the BIS’s collaboration with Canada’s central bank.

“We are looking forward to collaborate with the Bank of Canada and other central banks to foster a more modern, efficient and inclusive financial system,” Carstens added.

Related: Canadian regulator seeks feedback on crypto asset exposure disclosure requirements

BIS’ work on CBDCs and tokenization

On Jan. 23, the BIS announced its work program for 2024. Some of the organization’s core focuses for the year include the second phase of CBDC privacy testing and the launch of a blockchain-based tokenization project.

On April 3, the BIS announced a massive collaboration with the central banks of France, Japan, South Korea, Mexico, Switzerland, the United Kingdom and the United States. The initiative explores asset tokenization in the financial system and private institutions.

The initiative, “Project Agora,” aims to build on a proposed unified ledger concept that bridges wholesale central bank funds and tokenized commercial bank deposits.

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