Project Icebreaker

History

2022: Central Bank of Sweden, Norway and Israel launch digital currency payments

At the end of September 2022, the Central Banks of Sweden, Norway and Israel launched a project of digital transfers of funds between countries. The system was named Project Icebreaker. We are talking about the use of digital currencies of central banks (CBDC) in international retail payments and money transfers. The pilot project is being implemented with the participation of the Bank for International Settlements (BIS).

BIS is an association of 61 central banks around the world and has innovative centers established in various countries to study the use of new financial technologies, including CBDCs, which are digital versions of sovereign currencies of countries.

Central Bank of Sweden, Norway and Israel launched payments in digital currency

The new cooperation provides for the participation of the Northern Center of the BIS Innovation Center, which will test the key functions and technical aspects of the interaction of the various national systems of the Central Bank, the statement said.

International transactions still come with high fees, low speeds, limited access and a lack of transparency, BIS officials said. The International Monetary Fund said that CBDCs could reduce the cost of cross-border settlements, while earlier, at the end of September 2022, one of the BIS centers announced the successful completion of a joint project with the participation of various Asian CBDCs, in which foreign exchange transactions worth more than $22 million were made.

Project Icebreaker will test almost instant CBDC retail payments across borders at minimal cost. A final report on the project is expected in the first quarter of 2023.

{{quote 'This first-of-its-kind experiment will take a deeper look at technology, architecture and design, options and trade-offs, and explore relevant political issues, "said Beju Shah, head of BIS's Northern Innovation Center. This knowledge will be invaluable for central banks contemplating the implementation of CBDCs for cross-border payments^[1] }}

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