- The Bank for International Settlements (BIS) and the Bank of England have embarked on Project Rosalind, aiming to harness APIs to facilitate retail payments through Central Bank Digital Currencies (CBDCs).
- Project Rosalind has successfully developed 33 API functionalities that cater to over 30 CBDC use cases, such as offline payments, peer-to-peer transfers, and retail payments, thereby demonstrating the versatility of CBDCs.
In a pursuit to intertwine the monetary authorities and the private sector for the effective facilitation of retail digital currency payments, the Bank for International Settlements (BIS) and the Bank of England embarked on a joint venture known as Project Rosalind. The experiment entailed the development of 33 application programming interface (API) functionalities to test more than 30 CBDC use cases, including offline payments.
APIs form the bedrock of communication between diverse computer programs, seamlessly allowing them to share data. Project Rosalind explored the potential of an API layer to buttress a retail CBDC, enabling secure payments across various use cases. The experiment tested an array of payment options such as online, offline, in-store payments, and interactions with QR codes, mobile phones, smart cards, among others. It also delved into the facilitation of micropayments, demonstrating the practical utility of CBDCs.
Francesca Hopwood Road, the head of the BIS Innovation Hub London Centre, articulated an intriguing scenario. “Project Rosalind employed a child-parent wallet use case. It examined responsible spending, how parents can allocate pocket money to children, and how that money could be spent in different locations,” she said. The experiment revealed that the API layer could successfully operate with different ledgers, hinting at the technological versatility of the project.
The BIS, in conjunction with the Bank of England, had previously published a report on Project Meridian, which confirmed the efficacy of distributed ledger technology in facilitating interbank transactions. “The BIS seeks to contribute to the ‘very important’ CBDC conversation at the moment. We are experimenting and exploring different dimensions of the CBDC space, such as cross-border, offline, security,” commented Hopwood Road.
Blockchain network Quant unveiled its participation as part of the vendor team for Project Rosalind. In partnership with digital solutions platform UST, it facilitated the underlying infrastructure, secure smart contracts, and the interoperability of central bank ledgers.
Project Rosalind epitomizes the power of the union between central bank and private sector infrastructures, powered by a “universal and extensible API layer.” Its successful implementation of 33 API functionalities to support 30 retail CBDC cases has set a precedent for the potential of CBDC systems, fostering a significant contribution to global digital currency conversations.
