BIS develops model for cross-border CBDC settlements

The Bank for International Settlements (BIS) has completed the “Icebreaker” project, aimed at creating a cross-border retail payment system for CBDCs. This is stated in the organization’s report.

The distributed-ledger technology is intended to provide cheaper and more secure international payments in central bank digital currencies. Icebreaker was developed in collaboration with the central banks of Israel, Norway and Sweden.

BIS Innovation Hub head Cecilia Skingsley noted that the project would give countries “almost full autonomy” in developing their digital currencies, while enabling their use in global cross-border operations.

“Although domestic payments have become cheaper, safer and more efficient, cross-currency transactions remain associated with high costs, slow speeds and risk. When studying CBDCs it is important to consider cross-currency capabilities from the outset,” said Aino Bunge, a spokeswoman for the Swiss bank Sveriges Riksbank.

Earlier this year, Bank of America analysts said that CBDCs could fundamentally alter the global financial system.