In an advanced statement, the Bank for International Settlements and the Bank of England announced the completion of Project Rosalind. The financial watchdogs revealed plans to release soon the central bank digital currency (CBDC), commonly known as Britcoin.
After analyzing the development of Britcoin, the developers agreed to integrate peer-to-peer payments to reduce transaction costs. In July 2022, the BIS and BoE entered into a partnership agreement to work towards developing an application programming interface (API) that blends with the Rosalind requirements.
Reportedly the joint effort aimed at exploring various API prototypes that support CBDC use in the retail sector.
Scope of Project Rosalind CBDC Test
Following the launch of project Rosalind, the financial watchdogs agreed to subdivide the projects into two main phases. In the primary phase, the project team integrated revolutionary tools to support developers in building new financial tools crucial to addressing financial crimes.
Additionally, in phase two of project Rosalind, the regulators invested in improving the payment system to improve efficiency and reduce transaction costs.
Subsequently, the regulators engage in testing the functionality of 33 APIs to be integrated into the retail CBDC. During the trials of the APIs, the CBDC use was experimented to around 30 retailers.
Furthermore, the developers examined effective strategies to launch the CBDC on mobile phones, retail vendor machines, and other online stores. It was observed that the regulators conducted extensive research to strengthen the programmability of the digital currency.
Programmability is the latest development used in the customization of digital money, which trains the fiat to behave according to the set conditions.Recently market critics questioned whether CBDC programmability could act against the instructions provided.
BoE Expands CBDC Use Case
Per the BIS and BoE observation, the API technologies have enormous potential to improve the relationship between most apex banks and private financial institutions in providing CBDC for retail use. They noted that the Rosalind project supported the central bank to improve its financial tools.
In a press release, the head of the BIS London Innovation Hub, Francesca Road, restated that the Rosalind project enabled the regulators to explore ways to integrate API protocol on the retail CBDC. Road noted that through the Rosalind project, the financial regulators introduced a range of various use cases of the CBDC to support the security and safety of the platform.
In a separate report, the Deputy Governor of BoE, Jon Cunliffe, stated that despite project Rosalind’s completion, the proposed CBDC launch might take much longer.Speaking at the Politico Global Tech Day event, Cunliffe confirmed that the CBDC launch was seven out of ten towards completion.