Project Icebreaker

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Central bank digital currencies - Bank for International Settlements (BIS).

Project Icebreaker was a joint initiative of the BIS and the central banks of Israel, Norway and Sweden, launched in 2022.

It was established to explore how central bank digital currencies (CBDCs) can be used for international retail and remittance payments.

Hub-and-spoke will benefit payers
"As detailed in the report, Project Icebreaker sets out to explore a specific way to interlink domestic systems (a so-called hub-and-spoke solution).
A cross-border transaction is broken down into two domestic payments, facilitated by a foreign exchange provider active in both domestic systems.
Therefore, retail CBDCs never need to leave their own systems.

In most existing cross-border payment systems, the payer has no choice regarding the exchange rate, as it has no control on who the provider of foreign exchange conversion is.
In the model developed by the Icebreaker project, many foreign exchange providers can submit quotes to the system's hub, which automatically selects the cheaper one for the end user."
Bank for International Settlements - March 2023.

See also

Other resources