The Bank for International Settlements (BIS) has showcased how regulatory compliance can be integrated into cross-border transaction protocols through Project Mandala. This initiative involves central banks globally, including the BIS Innovation Hub in Singapore, the Reserve Bank of Australia, and others. As of October 28, 2024, Project Mandala has reached its proof-of-concept stage, aiming to automate compliance for cross-border transactions. In this phase, participating institutions will use a peer-to-peer messaging system to access applicable regulatory policies and generate proofs of compliance without compromising privacy. The project leverages zero-knowledge proofs to verify compliance claims securely. Maha El Dimachki from the BIS indicated optimism about the project's capacity to enhance cross-border payments while ensuring privacy and regulatory effectiveness. This initiative aligns with G20 priorities for improving cross-border payment systems.

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