The Bank for International Settlements (BIS) has launched a new global project to study cross-border payments using central bank digital currencies (CBDC).
Representatives of the Bank for International Settlements have announced the launch of Project Icebreaker. The new project explores options for using CBDCs for retail cross-border payments. Central banks of Norway, Sweden, and Israel are involved in the project.
Project Icebreaker will test the key functions of existing CBDC systems in the member countries using the BIS Innovation Hub’s Nordic Center. Project participants will study the design and architecture of CBDC projects and the regulatory issues surrounding digital currencies.
Among the project’s main goals is improving the experience of cross-border payments by reducing commission costs and increasing transparency and speed. The results are expected to be released by the end of Q1 2023.
Recall that yesterday, the BIS announced the successful completion of a pilot cross-border wholesale CBDC project involving the central banks of Hong Kong, Thailand, China, and the UAE. Meanwhile, independent analysts released a report criticizing the CBDC concept and suggested stablecoins backed by fiat money, whose issuance would be the responsibility of private commercial banks, as an alternative.
