CBDC continues rocking stages as several countries move to integrate it into their financial system. Sweden and other countries’ central banks have attained their CBDC testing phase for cross-border transactions.
Sweden, Norway, and Israel Samples CBDC
On Wednesday, the central banks of Sweden, Norway, and Israel announced intentions to run further scrutiny of CBDC. They stated they would examine how to use it for foreign settlements. The futuristic motive behind this is to execute international trades using digital currencies.
Participating countries refer to the project as Project Icebreaker. It aims at building a hub for conniving parties to link their domestic proof-of-concept CBDC networks. With this in place, they can test it to see if it supports intertwining other countries’ digital currencies.
Throughout 2022, developers will research every bit of the project. So, by the end of the first quarter of 2023, they will issue a final report about it.
All three countries working on Project Icebreaker have been searching for potential ways to issue a digital match of their fiat money. Israel (digital Shekel), Sweden (e-Krona), and Norway (e-Kroner).
However, each country is developing its CBDC in seclusion. As a result, they are yet to find a way to connect their digital currencies. Interoperability is the common goal they share as they create their CBDCs.
CBDC Sandbox Testing
Mithra Sundberg, head of the e-Krona department, shared with pressmen that Sveriges Riksbank is teaming up with Israel to experiment on digital e-krona. He added that utilizing the e-Krona sandbox to interweave other currencies is vital. It will aid in learning all there is to know about international payments using digital currency.
Additionally, they will understand the guiding policies that suit foreign transactions using e-Krona.
Andrew Abir, deputy governor of the Bank of Israel, expressed the importance of e-Krona to reporters. He said that a miniature and open economy like Israel’s needs accessibility and efficiency for cross-territory payment. He stated that it is one of the primary factors that spurred the initiative.
Andrew added that it was an honor to partner with brilliant CBDC developers. Working with them on e-krona and cross-border transaction policies was a great opportunity. The outcome of the project will foster future collaboration on the digital shekel.
Meanwhile, Norges bank, Norway’s central bank, is yet to make a statement at press time. Some months ago, it revealed that its CBDC would copy Ethereum’s blockchain. Afterward, it unveiled its sandbox source code for public accessibility.
Torbjørn Hægeland, the executive director of financial stability at Norges bank, addressed CBDC recently.
The Riksbank and the Bank of Israel published the report containing Torbjørn’s speech. He expressed pleasure in partaking in the experimentation of international retail CBDC.
Then, he commended partners like BIS Innovation Hub, Riksbank, and the Bank of Israel for their cooperation. He added that the partnership would impact domestic payment in digital currency significantly.
