According to a report released by the Bank for International Settlements (BIS), the organization has completed the Icebreaker project aimed at creating a cross-border retail payment system for CBDCs.
According to the document, the distributed ledger technology has been designed to enable cheaper and more secure cross-border payments with central bank digital currencies. Icebreaker has been created in cooperation with the central banks of Israel, Norway and Sweden.
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Cecilia Skingsley, director of the BIS Innovation Center, has stressed the project will give countries "almost complete autonomy" in the development of their digital currencies, while giving them the opportunity to use them in global cross-border transactions.
Aino Bunge, spokesperson for Switzerland's Sveriges Riksbank, has said:
"Although domestic payments have become less expensive, safer and more efficient, payments across currencies are still associated with high costs, slow speed and risk. When exploring CBDCs it is important to include cross-currency opportunities from the start."
Bank of America analysts said back in January that central bank digital currencies could fundamentally change the global financial system.