The project seeks to increase the speed, transparency, and cost-effectiveness of cross-border payments through CBDCs.
Together with the Bank for International Settlements (BIS), the central banks of Sweden, Norway, and Israel have joined forces to investigate the potential of central bank digital currencies (CBDC) for international remittance and retail payments.
The initiative, called Project Icebreaker, will examine key features and technical aspects of connecting various domestic CBDC systems. According to Bank of Israel deputy governor Andrew Abir, “efficient and accessible cross-border payments are of extreme importance for a small and open economy like Israel and this was identified as one of the main motivations for a potential issuance of a digital shekel.”
The project’s final report is anticipated to be released in the first quarter of 2023.