(Duplicated)Israel, Norway and Sweden Partnered with BIS to Explore the Application of CBDC Payments

The central banks of Israel, Norway and Sweden have partnered with the Bank of International Settlements (BIS) to explore the application of CBDC for international retail and remittance payments, launching a project called Icebreaker.

According to a press statement, the “icebreaker project” collaboration will involve the bank’s innovation hub, the Nordic Centre, to test key functions and the technical feasibility of interconnecting CBDC systems within different countries. The central bank will develop a new hub where Norges Bank, Bank of Israel and Sveriges Riksbank can connect their proof-of-concept CBDC systems.

A final report on the project is expected in the first quarter of 2023.

The BIS remains motivated to help support the emergence of “a global network connecting CBDC platforms and interoperable CBDCs.” To achieve this, the BIS will facilitate the development of large-scale technical capabilities and testing, develop a platform rulebook for multi-cbdc platforms, and require a review of the legal and regulatory frameworks of all participating countries.

Beju Shah, Head of Nordic Centre, BIS Innovation Centre

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.

In order to achieve the emergence of “a global network of connected CBDC platforms and interoperable CBDCs”, BIS has been promoting the development of large-scale technical capabilities and testing, developing platform rulebooks for multi-cbdc platforms, and needing to review the laws of all participating countries and regulatory framework.

In May, 90% of apex banks have shown intentions of rolling out Central Bank Digital Currencies (CBDCs), according to a study by the Bank for International Settlements (BIS).

The study surveyed 81 central banks about their engagement in CBDCs as well as their intentions and motivations about CBDC issuance.

Currently, more than 110 countries are at one stage or another of the CBDC development process, and many more are poised to join the trend. The Bank for International Settlements, which needs to carve a path for international and cross-border settlements in new forms of fiat money, will not be intimidated by these challenges and will continue to work with partner countries to address the unknowns that may hinder this noble cause.