New BIS Innovation Hub in Toronto to focus on Open Finance

The Bank for International Settlements (BIS) and the Bank of Canada have launched the BIS Toronto Innovation Centre, with Open Finance identified as one of its “priority themes”.

Toronto is the first BIS Innovation Hub (BISIH) Centre to be established in the Americas and the seventh to be opened by the BIS in collaboration with partner central banks around the world.

The centre will explore the development of new technologies that have been designed to make the financial system more efficient and inclusive, in Canada and throughout Latin America and the Caribbean.

Headed by Miguel Diaz, the Toronto Innovation Centre will initially focus on projects to explore next-generation financial market infrastructures, innovation for regulatory, supervisory and oversight purposes (suptech) and Open Finance.

Other priority themes are cyber security, green finance and central bank digital currencies (CBDCs).

Agustín Carstens, general manager of the BIS, said of the opening: “It represents an important milestone in our efforts to build the financial system of the future through innovation and experimentation, enabling us to fully bring this mission to the Americas together with our many partners in the region.

“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.”

“Fostering innovation has never been more crucial; that’s as true for central bankers as it is for business leaders,” added Tiff Macklem, governor of the Bank of Canada. 

“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.

“That’s why this hub and our partnership with the BIS are so important.”

In September last year, BIS concluded Project Mariana, which tested the cross-border trading and settlement of wholesale CBDCs between simulated financial institutions.

The test made use of new decentralised finance (DeFi) technology concepts on a public blockchain.