Breaking: BIS, Israel, And Sweden Pioneer Cross-Border CBDC Retail Project

Key Points:

• The Icebreaker Project, which was conducted by the Nordic Innovation Center of the Bank for International Settlements (BIS) in collaboration with the central banks of Israel, Norway, and Sweden, has recently concluded.
• The technical feasibility of cross-border transactions between retail CBDC systems has been demonstrated, and the project’s findings suggest that the approach has the potential to offer significant benefits to users.

The Icebreaker Project, which was conducted by the Nordic Innovation Center of the Bank for International Settlements (BIS) in collaboration with the central banks of Israel, Norway, and Sweden, has recently concluded.

This study focused on the potential benefits and challenges of using various types of retail central bank digital currency (CBDC) for international payments. In addition, the project tested the technical feasibility of cross-border and currency transactions between several experimental retail CBDC systems.

The Icebreaker project explored a specific method of connecting retail CBDC systems known as “shaft and spokes solutions,” which has several additional features that could be easily extended to the Icebreaker model. The cross-border transactions were split into two domestic payments, each supported by foreign exchange providers operating in both domestic systems. This approach ensured that a retail CBDC never needs to leave its own system.

The project’s completion has opened up a new avenue for cross-border retail CBDC payments. The technical feasibility of cross-border transactions between retail CBDC systems has been demonstrated, and the project’s findings suggest that the approach has the potential to offer significant benefits to users.

It is important to note that the Icebreaker Project has not been independently verified for plagiarism or accuracy. Nonetheless, the collaboration between the central banks of Israel, Norway, and Sweden, along with the BIS’s Nordic Innovation Center, underscores the growing interest in exploring the potential of CBDCs to revolutionize the payments landscape. As such, it is likely that more research will be conducted in this area in the coming years.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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