The Bank for International Settlements (BIS) and the central banks of Israel, Norway, and Sweden have concluded Project Icebreaker, a pilot retail central bank digital currency (CBDC) pilot, according to a BIS press release. 

The Project Icebreaker report explains that it aims to investigate a particular approach for linking domestic systems, known as the hub-and-spoke solution. This method involves dividing a cross-border transaction into two domestic payments that are processed by a foreign exchange provider that operates in both domestic systems. This means that retail CBDCs can remain within their respective systems and do not need to be transferred across borders.

Cecilia Skingsley, Head of the BIS Innovation Hub, stated:

"Project Icebreaker is unique in its proposition. It first allows central banks to have almost full autonomy in designing a domestic retail CBDC. Then it provides a model for that same CBDC to be used for international payments.  "

"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. Project Icebreaker shows how different CBDC solutions in different countries could enable instant cross-currency transactions in a way that would greatly benefit the end users. The project has also been a great example of collaboration and sharing of knowledge between the participating central banks and BIS. Although there are a lot of questions that need to be investigated further, Project Icebreaker is a valuable initiative and contribution to the discussion on how we can improve cross-currency payments." Aino Bunge, the Deputy Governor of Sveriges Riksbank, said in the press release.