{"id":18454,"date":"2023-03-08T08:36:11","date_gmt":"2023-03-08T08:36:11","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/bis-releases-report-on-project-icebreaker-develops-cross-border-retail-cbdc-payment-model-bitcoin-news\/"},"modified":"2023-03-08T08:36:11","modified_gmt":"2023-03-08T08:36:11","slug":"bis-releases-report-on-project-icebreaker-develops-cross-border-retail-cbdc-payment-model-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/bis-releases-report-on-project-icebreaker-develops-cross-border-retail-cbdc-payment-model-bitcoin-news\/","title":{"rendered":"BIS Releases Report On \u2018Project Icebreaker\u2019 \u2014 Develops Cross-Border Retail CBDC Payment Model \u2013 Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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The Bank for International Settlements (BIS) has released a report summarizing the \u201cProject Icebreaker\u201d trial, which explored the potential advantages and difficulties of utilizing a retail central bank digital currency (CBDC) in cross-border payments. The experiment was designed to test \u201cthe technical feasibility of conducting cross-border \u2013 cross-currency transactions between different [distrubuted ledger technology]-based CBDC proof of concepts.\u201d<\/strong><\/p>\n

Technical Feasibility of Cross-Border Retail CBDC Payments Reportedly Proven in Project Icebreaker Trial<\/h2>\n

Central bank digital currencies (CBDCs) have been a key focus for the Bank for International Settlements (BIS) in recent times. BIS recently published a report<\/a> asserting that most crypto asset investors lost money over the past seven years. The report highlighted BIS insisting there\u2019s an urgent need for regulating the crypto industry and developing a CBDC.<\/p>\n

Following the report, BIS general manager Agustin Carstens stated<\/a> that crypto assets have already lost the battle to central bank-issued fiat currencies. Carstens also emphasized the necessity for central banks to take charge of innovation and create a functional CBDC. \u201cIf central banks do not innovate, others will step in,\u201d Carstens cautioned.<\/p>\n

On March 6, 2023, BIS published a report<\/a> titled \u201cProject Icebreaker: Breaking New Paths in Cross-Border Retail CBDC Payments.\u201d The BIS study highlights the participation of the BIS Innovation Hub Nordic Centre and central banks in Norway, Israel, and Sweden in the project. Project Icebreaker aims to connect domestic CBDC systems using a \u201chub-and-spoke\u201d model.<\/p>\n

Additionally, the BIS report emphasizes the need to address \u201clegal considerations\u201d for the Icebreaker hub-type approach. Cecilia Skingsley, the head of BIS Innovation Hub, explained that Project Icebreaker is \u201cunique in its proposition.\u201d<\/p>\n

\u201cIt first allows central banks to have almost full autonomy in designing a domestic retail CBDC,\u201d Skingsley said<\/a>. \u201cThen it provides a model for that same CBDC to be used for international payments.<\/p>\n

According to the BIS report, implementing Icebreaker in the real world would \u201crequire a range of technology\u201d and would need to enhance both privacy and \u201cAML\/CFT compliance and monitoring.\u201d The project employed three technologies in each nation state, including Ethereum Quorum in Israel, Hyperledger Besu in Norway, and the Corda network in Sweden.<\/p>\n

A CBDC can be created in a custom fashion, and central banks can still \u201cparticipate in a formalized interlinking arrangement to enable cross-border payments.\u201d According to the BIS report, the author suggests that central banks should consider integrating conditional settlement and possibly adopting the current messaging and addressing standards used today.<\/p>\n

\u201cIf Israel is to issue a digital shekel, it would be very important that we do it according to the evolving global standards, so that Israelis could use it also for efficient and accessible cross border payments,\u201d said Andrew Abir, the deputy governor at the Bank of Israel, in a statement. \u201cWhile there is still much work ahead of us for the Icebreaker model to become a global standard, the learnings from this successful project have been very important for us and for the central banking community,\u201d Abir added.<\/p>\n

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\n Tags in this story
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Agustin Carstens<\/a>, AML\/CFT compliance<\/a>, Andrew Abir<\/a>, Bank for International Settlements<\/a>, bank of israel<\/a>, BIS<\/a>, Blockchain<\/a>, CBDC<\/a>, central bank digital currency<\/a>, conditional settlement<\/a>, Corda network<\/a>, cross-border payments<\/a>, cross-currency transactions<\/a>, crypto assets<\/a>, crypto industry<\/a>, digital payments<\/a>, digital shekel<\/a>, DLT<\/a>, Ethereum Quorum<\/a>, financial innovation<\/a>, global standards<\/a>, hub-and-spoke model<\/a>, Hyperledger Besu<\/a>, Innovation<\/a>, israel<\/a>, legal considerations<\/a>, messaging standards<\/a>, Monitoring<\/a>, Norway<\/a>, Privacy<\/a>, Project Icebreaker<\/a>, Regulation<\/a>, retail CBDC<\/a>, Sweden<\/a><\/div>\n<\/div>\n

What are your thoughts on Project Icebreaker, CBDCs, and cross-border retail CBDC payments? Share your views on this topic in the comments section below.<\/strong><\/em><\/p>\n

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\nJamie Redman <\/h6>\n

\nJamie Redman is the News Lead at Bitcoin.com News and a financial tech journalist living in Florida. Redman has been an active member of the cryptocurrency community since 2011. He has a passion for Bitcoin, open-source code, and decentralized applications. Since September 2015, Redman has written more than 6,000 articles for Bitcoin.com News about the disruptive protocols emerging today.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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