A spokesperson for the Bank of Israel told BeInCrypto that technical work on ‘Project Icebreaker’ will begin in the coming weeks.
Game Ice breaker 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 interconnecting separate Central Bank Digital Currencies (CBDC).
The Bank of Israel has designed a ‘hub’ to facilitate communication and data exchange among national CBDC systems. According to the Governor of the Bank of Israel, Amir Yaronthe concept only requires fine-tuning of the national CBDC systems to «achieve the desired interoperability».
If all goes as planned, this would make international payments instant and complete counterparty risk in global banking systems.
The Icebreaker Project aims to Simplify International Payments Through CBDCs
Over a hundred countries are researching CBDCs, although the technology is still in its infancy. Currently, there is limited work on how different CBDCs will work with each other to allow instant cross-border payments and remittances.
Yaron believes their system is agile and capable enough to allow different CBDCs to talk efficiently and seamlessly to each other.
The BIS Innovation Hub, the Committee on Payments and Market Infrastructures (CPMI), the International Monetary Fund (IMF), and the World Bank jointly published a report entitled ‘Options for access and interoperability of CBDCs for cross-border payments’ in July last year. Project Icebreaker aims to take that work a step further.
The Governor of the Bank of Israel, Amir Yaron, spoke about the project at the World Economic Forum last week. “We are in the middle 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 transfers it back to someone in Sweden. or Norway.”
Yaron added that CBDCs could eliminate the need for stablecoins altogether.
BeInCrypto has reached out to a company or individual involved in the matter for an official statement on the recent developments, but has yet to hear back.