According to a press release issued on Wednesday, Sveriges Riksbank, Sweden's central bank, is collaborating with peers in Israel and Norway, as well as the Bank for International Settlements (BIS), to assess instant payments through the use of retail cross-border central bank digital currency (CBDC).
"This one-of-a-kind experiment will delve deeper into technology, architecture, and design changes and trade-offs, as well as related policy issues," said Beju Shah, Head of the BIS Innovation Hub Nordic Center. "These insights will be extremely valuable for central banks considering the use of CBDCs for cross-border payments."
"Project Icebreaker" is BIS's fourth cross-border CBDC project; the other three are mBridge, Project Dunbar, and Project Jura. 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 foreign exchange transactions bringing the total to more than US$22 million worth.
According to the Atlantic Council, 105 countries, accounting for more than 95% of global GDP, are currently investigating CBDC, with ten fully implementing it. Interoperability between CBDCs, according to the think tank, maybe the next struggle for immersive cross-border payments.
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