The experiment between the central banks saw the development of several application programming interfaces for the CBDC use cases.
The grouping of central banks worldwide called the Bank for International Settlements (BIS) and the Bank of England, have together initiated an experiment called ‘Project Rosalind’ to dwell into how an application programming interface (API) layer could be used for various CBDC use cases, including for safe retail payments.
The BIS Innovation Hub London Centre was part of the initiative, which has subsequently developed 33 API functionalities for over 30 CBDC use cases. Sectors covering the CBDC use cases included P2P transfers, small-value business transactions, and retail payments for goods and services.
The Head of the BIS Innovation Hub London Centre, Francesca Hopwood Road, said in a press release, “The Rosalind experiment has advanced central bank innovation in two key areas: by exploring how an API layer could support a retail CBDC system and how it could facilitate safe and secure CBDC payments through a range of different use cases.”
The private sector, central banks, and academia were involved in Project Rosalind, which covered multiple payment options, including offline and online retail CBDC payments, mobile phones, smartcards, and others.
The experiment mainly looked at how an API layer could serve as the link between the private sector and central bank infrastructure through a two-tier CBDC model. The central bank could issue the CBDC and provide the ledger infrastructure, while the private sector could be responsible for the user-facing service.
Hopwood Road said Project Rosalind could make a significant contribution to retail CBDC systems worldwide.