BIS Joins Hong Kong, Israel for CBDC Experiment
The BIS Innovation Hub partnered with the Bank of Israel and the Hong Kong Monetary Authority to trial a retail CBDC....
- The BIS Innovation Hub partnered with the Bank of Israel and the Hong Kong Monetary Authority to trial a retail central bank digital currency (CBDC) called Project Sela.
- Project Sela aimed to create an accessible, competitive, and innovative retail CBDC that retains the advantages of physical cash while ensuring cyber security.
- The project introduced a novel type of intermediary called the Access Enabler, which manages customer-facing CBDC services without holding users' funds.
- The Access Enabler eliminates complexity and risk for payment service providers.
- The project proved the feasibility of the CBDC model without compromising cyber security or user privacy.
- The Bank of Israel and the HKMA expressed their interest in exploring the implementation of a retail CBDC based on the outcomes of Project Sela.
The article highlights the successful completion of Project Sela, a trial for a retail central bank digital currency. The sentiment is positive, emphasizing the feasibility of an innovative CBDC model that ensures cyber security and user privacy.