The Bank of International Settlements (BIS) and the Bank of England (BoE) have concluded an innovative pilot project focused on central bank digital currencies (CBDCs). Named Project Rosalind, the initiative aimed to explore the implementation of a “universal and extensible API layer” to seamlessly connect central bank and private sector infrastructures, enabling efficient retail CBDC payments.
Throughout the project, 33 API functionalities were developed, and an extensive examination of 30 retail CBDC use cases was conducted. These included peer-to-peer transfers, retail payments for goods and services, as well as small-value business transactions. The collaboration between the public and private sectors played a central role in identifying and exploring these use cases.
By successfully showcasing that a well-designed API layer can effectively interface with diverse private sector applications and central bank ledger designs, the BIS and BoE have set a new standard in CBDC integration. The implementation of simple and standardized API functionalities has proven to be capable of supporting a wide range of use cases, revolutionizing the design of retail CBDC systems.
Francesca Hopwood Road, Head of the BIS Innovation Hub London Centre, emphasized the significance of this achievement, stating, “Active collaboration with the public and private sectors to identify and explore these use cases has been at the heart of this. We believe that Rosalind can make a significant contribution to how organizations across the globe are thinking about and engaging with the design of retail CBDC systems.”
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