Exploring Project Agora: Two Distinct Initiatives

The name "Project Agora" is associated with two distinct initiatives. One is a media technology and advertising platform, and the other is a project led by the Bank for International Settlements (BIS) exploring the use of tokenization in cross-border payments. This response will delve into both to provide a comprehensive understanding.

Key Highlights

Project Agora (Advertising Platform): This is a Software-as-a-Service (SaaS) advertising platform that empowers local media owners and retailers in emerging markets to maximize the value of their digital properties through native and programmatic advertising solutions.
Project Agorá (BIS): This is a public-private collaboration, led by the Bank for International Settlements (BIS) and involving several central banks and private financial institutions, to investigate how tokenized commercial bank deposits can be integrated with tokenized wholesale central bank money on a programmable platform to improve cross-border payments.
Dual Meanings: It is crucial to distinguish between the two "Project Agora" initiatives as they operate in entirely different sectors: digital advertising and wholesale financial markets/payments.

Project Agora: The Advertising Platform

Empowering Local Media and Retailers

Project Agora, as a media technology company, focuses on providing advertising solutions primarily to local publishers and retailers in emerging markets. Their platform is designed to help these entities extract maximum value from their website visitors through various advertising formats and technologies.

What Project Agora Offers

The Project Agora platform is a SaaS solution offering a suite of tools and services. These include:

Native Advertising: Integrating ads that blend seamlessly with the surrounding content, improving user experience and engagement.
Programmatic Advertising: Utilizing automated systems to buy and sell ad space, optimizing efficiency and reach.
Retail Media: Enabling retailers to monetize their e-commerce platforms by allowing advertisers to promote products directly to shoppers.
Header Bidding: A programmatic technique that allows publishers to offer their inventory to multiple ad exchanges simultaneously, increasing competition and potentially revenue.
Data and Technologies: Providing media owners with the necessary data and technological resources to monitor and optimize their advertising performance.

How it Works for Media Owners and Retailers

For media owners, Project Agora acts as a partner to consolidate various advertising channels and campaigns. By integrating the Project Agora platform, publishers can access demand from numerous advertisers through a single point, simplifying their monetization efforts. The platform aims to increase eCPM (effective cost per mille), minimize inventory leakage, and enhance overall revenue.

For e-commerce retailers, Project Agora Commerce provides an auction-based advertising platform. This allows retailers to integrate advertising directly into their websites and email marketing. Using first-party sales data, the platform delivers relevant and personalized ad content, such as product listing ads and banner ads, in real-time. Retailers maintain control over where, when, and how often ads are displayed, while advertisers can create campaigns to promote products and track their performance.

Image illustrating Project Agora's focus on media technology and advertising.

Company Background

Project Agora was launched in 2014 as a spin-off from ThinkDigital Group (TDG), a digital advertising and marketing technology group. The company is VC-backed and has grown to over 130 employees, positioning itself as a media partner in rapidly growing markets across EMEA and LATAM. Their vision, sometimes referred to as "Laissez Faire Advertising," is to provide alternatives outside the dominance of major tech platforms, supporting local advertisers and media owners.

Project Agorá: The BIS Initiative

Exploring Tokenization for Cross-Border Payments

Distinct from the advertising platform, Project Agorá (often spelled with an accent) is a significant undertaking led by the Bank for International Settlements (BIS) Innovation Hub. This project is a public-private collaboration focused on the potential of tokenization to improve the efficiency and functioning of the monetary system, particularly for cross-border payments.

The Core Concept

Project Agorá investigates how tokenized commercial bank deposits can be seamlessly integrated with tokenized wholesale central bank money on a programmable platform. The goal is to address existing structural inefficiencies in cross-border payments, such as differing legal, regulatory, and technical requirements across jurisdictions.

Public-Private Collaboration

This initiative involves a collaboration between the BIS, a group of leading central banks, and a significant number of private sector financial institutions. Central banks participating include the Bank of France, Bank of Japan, Bank of Korea, Bank of Mexico, Swiss National Bank, and the Federal Reserve Bank of New York (representing the Eurosystem). More than 40 private sector firms have also joined the project.

Image potentially related to the BIS Project Agorá, given the source.

Objectives and Potential Benefits

The primary objective is to explore how a unified ledger concept, combining tokenized commercial bank deposits and wholesale central bank money, could facilitate faster, cheaper, and more transparent cross-border transactions. Potential benefits include:

Reduced Friction: Streamlining the complex process of international payments by operating on a common platform.
Improved Efficiency: Faster settlement times and lower transaction costs.
Enhanced Transparency: Increased visibility of transactions.
Innovation: Creating a platform for developing new financial products and services.
Risk Reduction: Potentially reducing settlement risk through atomic settlement.

The project aims to perform screening at the start of the payment process and share information across participating banks, which could help reduce risks and improve compliance.

Project Status

As of recent reports, Project Agorá is in its design phase, exploring the practicalities and technical aspects of implementing such a programmable platform. The collaboration between central banks and private institutions is crucial for understanding the real-world implications and potential challenges of tokenized wholesale money and deposits in a cross-border context.

Comparing the Two "Project Agora" Initiatives

Distinct Purposes and Scope

While both use the name "Agora," the two projects are fundamentally different in their purpose, scope, and participants. The table below highlights the key distinctions:

Feature	Project Agora (Advertising Platform)	Project Agorá (BIS)
Primary Focus	Digital advertising and media monetization	Wholesale cross-border payments and tokenization
Initiator/Lead Entity	Project Agora (a TDG company)	Bank for International Settlements (BIS) Innovation Hub
Participants	Local publishers, retailers, advertisers, and technology vendors	Central banks and private sector financial institutions
Technology Involved	Native ads, programmatic ads, retail media platforms, header bidding	Tokenization of commercial bank deposits and wholesale central bank money, programmable platforms
Goal	Maximize value for media owners and retailers through advertising, provide alternatives to large tech platforms	Improve efficiency, speed, and transparency of cross-border payments using tokenization
Status	Operational company with existing products and services	In design and exploratory phase

Further Context and Related Initiatives

The Broader Landscape

Understanding these two "Project Agora" initiatives also benefits from a brief look at related areas.

In Digital Advertising

The advertising platform operates within a dynamic industry facing challenges related to data privacy, ad blockers, and the dominance of major digital players. Project Agora's focus on supporting local media and providing alternative solutions aligns with broader efforts to foster a more open and diverse digital advertising ecosystem. Technologies like header bidding and the focus on native advertising are part of ongoing efforts to improve monetization for publishers and engagement for advertisers.

In Finance and Tokenization

Project Agorá is part of a global exploration by central banks and financial institutions into the potential of distributed ledger technology (DLT) and tokenization. This includes research into central bank digital currencies (CBDCs), wholesale CBDCs, and the tokenization of various assets. The BIS Innovation Hub is involved in several such projects aimed at modernizing financial infrastructure and cross-border payments. Project Agorá specifically focuses on the interaction between commercial bank money and central bank money in a tokenized environment, which is a crucial area of research for the future of finance.

This video provides a press briefing on the BIS Project Agorá, offering insights into its objectives and significance from a central banking perspective. It is relevant as it directly discusses the BIS initiative, helping to clarify its purpose within the broader financial system.

Frequently Asked Questions (FAQ)

What is the primary difference between the two Project Agora initiatives?

The primary difference lies in their respective industries and goals. One is an advertising technology platform for media owners and retailers, while the other is a financial project led by the BIS exploring tokenized cross-border payments.

Which central banks are participating in the BIS Project Agorá?

Participating central banks include the Bank of France, Bank of Japan, Bank of Korea, Bank of Mexico, Swiss National Bank, and the Federal Reserve Bank of New York, representing the Eurosystem.

What types of advertising does the Project Agora platform offer?

The Project Agora advertising platform offers native advertising, programmatic advertising, retail media solutions, and utilizes technologies like header bidding.

What is the purpose of tokenizing commercial bank deposits and central bank money in the BIS project?

The purpose is to investigate if tokenization on a programmable platform can improve the efficiency, speed, and transparency of wholesale cross-border payments.