Could a digital payment carry proof that its checks are complete?
Project Mandala explored embedding regulatory checks into cross-border transaction workflows while preserving institutional responsibility.
From the archive · 28 Oct 2024
A retrospective written for Chain Perspective. It describes the source at that date and does not imply current availability or status.
Reported development: · AI-assisted, source-linked brief
In brief
- The prototype combined messaging, rules and proof-generation components.
- Automation did not replace the responsibility to apply relevant rules.
The development
Project Mandala explored a compliance-by-design approach to cross-border payments. In its October 2024 project update, the BIS described a decentralized architecture combining messaging, a rules engine and a proof engine. Checks were intended to happen before a payment instruction was initiated, with a compliance proof capable of accompanying a digital settlement asset or payment instruction.
Why it matters
This shifts attention to the information that must travel with money. The potential benefit is less repeated processing across institutions, while proofs may limit disclosure of underlying customer data. These are experimental capabilities, not a promise that software can decide every legal question. Financial institutions remained responsible for interpreting and applying regulatory measures. The project is relevant to digital assets because faster settlement alone cannot resolve incompatible cross-border requirements.
Sources and verification
Based on an official announcement
Based on the dated primary source. This retrospective does not establish current availability or subsequent outcomes.
- Project Mandala ↗Bank for International Settlements · Primary document · 28 Oct 2024
Prepared with AI assistance from the linked sources. This is not a claim of independent field reporting or human review. How we publish · Report a correction
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