See More

Bank of International Settlements Plans Interoperable CBDC Tests ‘in Coming Weeks’

2 mins
Updated by Ryan James
Join our Trading Community on Telegram

In Brief

  • The Bank of International Settlements, and the central banks of Norway, Israel and Sweden are collaborating on interoperable CBDCs.
  • A spokesperson for the Bank of Israel told BeInCrypto that technical work will begin in the coming weeks.
  • If successful, the work could pave the way for a more cashless society where digital payments are instantaneous.
  • promo

A spokesperson for the Bank of Israel has told BeInCrypto that technical work on ‘Project Icebreaker’ will begin in ‘the coming weeks.’

Project Icebreaker is a collaborative effort between the Bank of International Settlements (BIS) Innovation Hub and the central banks of Israel, Norway, and Sweden to test the feasibility of interlinking separate Central Bank Digital Currencies (CBDC).

The Bank of Israel has designed a ‘hub’ to facilitate communication and data exchange among the national CBDC systems. According to the Governor of the Bank of Israel, Amir Yaron, the concept requires only minimal adjustments to the national CBDC systems in “order to achieve the desired interoperability.”

If all goes to plan, this would make international payments instantaneous and remove counterparty risk in global banking systems.

Project Icebreaker Aims To Streamline International Payments Via CBDCs

Over one hundred countries are researching CBDCs, although the technology is still in its infancy. Currently, there has been limited work on how different CBDCs will work with each other to allow for immediate cross-border payments and remittances. 

Yaron believes that their system is agile and capable enough to allow different CBDCs to effectively and seamlessly talk to each other.

Icebreaker CBDC Test
Source: Bank of International Settlements

BIS Innovation Hub, BIS-housed Committee on Payments and Market Infrastructures (CPMI), International Monetary Fund (IMF), and World Bank jointly published a report titled ‘Options for access to and interoperability of CBDCs for cross-border payments’ in July last year. Project Icebreaker aims to take that work a step further.

The Bank of Israel’s Governor, Amir Yaron, spoke about the project at the World Economic Forum last week. “We are in the midst of a technological revolution in the payment system… I believe it is the first CBDC retail experiment that takes a retail payment from a household or a merchant in Israel, paying in Shekels, and transferring it back to somebody in Sweden or Norway.”

Yaron also said that, eventually, CBDCs could remove the need for stablecoins altogether.

Top crypto projects in the US | May 2024



In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.

Josh Adams
Josh is a reporter at BeInCrypto. He first worked as a journalist over a decade ago, initially covering music before moving into politics and current affairs. Josh first owned Bitcoin in 2014 and has followed the space ever since. He is particularly interested in Web3 adoption, policy and regulation, CBDCs, privacy, and the future of the metaverse.