BoE and BIS announce CBDC project

The collaborative efforts of the Bank of England (BoE) and the Bank of International Settlements (BIS) have achieved success with the completion of Project Rosalind, a project focused on Central Bank Digital Currencies (CBDCs).

Project Rosalind aimed to explore the potential of a “universal and extensible API layer” to bridge the gap between central bank and private sector infrastructures, particularly in facilitating retail CBDC payments. The initiative also sought to develop various retail CBDC applications.

The BoE, responsible for ensuring monetary and financial stability in the UK, partnered with the BIS, which promotes cooperation among central banks and serves as a bank for these institutions. Together, they delved into the realm of FinTech, revolutionizing the integration of digital currencies into private sector applications and central bank ledger designs.

Both the BoE and the BIS have confirmed the successful implementation of a robust API layer through Project Rosalind. This layer has demonstrated its compatibility with diverse private sector applications and central bank ledger designs, showcasing how a set of simple and standardized API functionalities can support a wide range of use cases.

Throughout the project’s duration, 33 API functionalities were developed and examined in relation to 30 retail CBDC cases. These cases included peer-to-peer transfers, retail payments for goods and services, and small-value business transactions.

Francesca Hopwood Road, Head of the BIS Innovation Hub London Centre, emphasized the importance of active collaboration with the public and private sectors to identify and explore these use cases. The contributions made by Project Rosalind are expected to significantly influence the design and engagement of retail CBDC systems worldwide.

The Digital Currency Monetary Authority (DCMA) had previously launched its CBDC, which aimed to enhance the monetary sovereignty of participating central banks.