Central bank digital currencies (CBDCs) are one potential avenue to reduce the cost and delays of cross border payments.
There have been several multi-CBDC initiatives, but all have focused on interbank or wholesale CBDC.
Today Sveriges Riksbank, the Bank of Israel and Norges Bank launched Project Icebreaker, which aims to interlink the test retail CBDC platforms of each central bank.
Project Icebreaker intends to enable instant retail CBDC international payments without using the correspondent banking system.
Technology, architecture and design choices will be explored alongside policy issues.
The experiments will run until the end of this year in association with the new Nordic BIS Innovation Hub.
Wholesale cross border CBDC trials have raised some interesting challenges.
To avoid using correspondent banking, a central bank would need to allow foreign banks to access its CBDC.
That’s a policy challenge raised by Project Dunbar, a project involving the central banks of Singapore, Malaysia, South Africa and Australia.
If the retail CBDCs are interconnected directly, this could potentially support P2P payments and sidestep that tricky issue.
Another major multi-CBDC project is mBridge involving the central banks of Thailand, Hong Kong, China and the UAE.
Project Jura is a cross border payment initiative between the central banks France and Switzerland.
And the Banque de France conducted a separte international payments project with the Monetary Authority of Singapore.
Many countries already started to prepare digital currency time and cosider their leaderships in this new revolutionary area. Now CBDC of all countries and national wide crypto projects cooperate with other countries.
South Korea goverment and supporters of present president Yoon and ruling party just focus on power game and do their best to rationalize their ruling power.
Soon South Korea do have huge gap on digital currency policy and development with other fast action groups.
Reference: Ledger Insight
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