Sweden’s Central Bank Is Testing Payments Using Retail Cross-border CBDC

According to a press statement issued on Wednesday, Sweden’s central bank, Sveriges Riksbank, is collaborating with peers in Israel and Norway, as well as the Bank for International Settlements (BIS), to test fast payments using retail cross-border central bank digital currency (CBDC).

The “Project Icebreaker” initiative will run until the end of the year, with a final report due in the first quarter of 2023, according to the press release.

Head of the BIS Innovation Hub Nordic Center, Beju Shah said:

“This first-of-a-kind experiment will dig deeper into the technology, architecture, and design choices and trade-offs and explore related policy questions. These learnings will be invaluable for central banks thinking about implementing CBDCs for cross-border payments.”

Project Icebreaker is BIS’s fourth cross-border CBDC project; the previous three are mBridge, Project Dunbar, and Project Jura.

According to a BIS consultant, the central banks of Hong Kong, mainland China, Thailand, and the United Arab Emirates, as well as the BIS, completed the pilot of the cross-border CBDC project mBridge, with more than $22 million in foreign exchange transactions.

According to the Atlantic Council, 105 nations, accounting for more than 95% of global GDP, are now investigating CBDC, with ten completely implementing it. Interoperability amongst CBDCs, according to the research group, might be the next obstacle to smooth cross-border payments.

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