BIS wraps exploration project on retail CBDC payment system

The Bank for International Settlements, oregon BIS, has reported it has concluded a task exploring planetary retail and remittance payments usage cases for cardinal slope integer currencies, oregon CBDCs, with the cardinal banks of Israel, Norway and Sweden.

In a March 6 report, the BIS said it had finished Project Icebreaker, an inaugural involving the bank’s Innovation Hub Nordic Centre investigating cardinal functions and the technological feasibility of interlinking home CBDC systems done the Central Bank of Norway, the Bank of Israel, and Sveriges Riksbank. According to the report, the BIS concluded that a ‘hub-and-spoke’ exemplary betwixt home systems could “reduce colony and counterparty hazard by utilizing coordinated payments successful cardinal slope wealth and implicit cross-border transactions wrong seconds”.

“Without a hub-and-spoke approach, each [retail CBDC, oregon rCBDC] strategy would request to marque idiosyncratic circumstantial web and infrastructure configurations to pass with different rCBDC systems,” said the report. “Communication betwixt these rCBDC systems whitethorn not beryllium standardised via a communal interface and would alternatively beryllium a bespoke integration betwixt each brace of rCBDC systems. This would beryllium not lone analyzable to enactment and support but could besides present cyber information risks.”

The #BISInnovationHub Nordic Centre and the cardinal banks of Israel, Norway and Sweden person concluded Project Icebreaker, which studied the imaginable benefits and challenges of utilizing retail #CBDC successful planetary payments @riksbanken @NorgesBank https://t.co/2OfFYaPbr6 pic.twitter.com/jPFjrCXDlT

The study could supply the groundwork for a cross-border outgo strategy should the cardinal banks of Israel, Norway and Sweden move guardant with issuing a integer shekel, integer krone, and integer krona, respectively. In October 2022, the slope reported that a CBDC pilot involving the cardinal banks of Hong Kong, Thailand, China and the United Arab Emirates was “successful” aft a month-long trial facilitating $22 cardinal worthy of cross-border transactions.

Related: Some cardinal banks person dropped retired of the integer currency race

In 2020, the Central Bank of the Bahamas became the archetypal successful the satellite to marque a cardinal bank-issued CBDC called the Sand Dollar available to each residents of the land nation. Other countries person been moving guardant connected large-scale trials of integer currencies, including China — the nation’s cardinal slope reportedly distributed millions of integer yuan implicit the Lunar New Year holidays.