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The BIS Innovation Hub partnered with the Bank of Israel and the Hong Kong Monetary Authority to trial a retail CBDC.
The Bank of International Settlements (BIS), in partnership with the central banks of Hong Kong and Israel, recently completed Project Sela. Project Sela proved a retail central bank digital currency (rCBDC) can combine accessibility, competition and preventative cyber security while retaining the main advantages of physical cash.
With Preventative Design, rCBDC Does Not Comprise Cyber Safety
Project Sela is coordinated by the BIS Innovation Hub Hong Kong Centre and leverages the Bank of Israel’s cyber security expertise and work on the digital shekel, along with the Hong Kong Monetary Authority’s (HKMA) findings from previous projects such as Project Aurum and e-Hong Kong Dollar. The project also took advice from other Innovation Hub experiments on retail CBDCs.
According to the BIS, one of Sela’s key goals was to promote an accessible, competitive, and innovative retail CBDC that can serve a variety of use cases. In achieving this goal, the project aimed to lower barriers to entry for service providers and unbundle and redistribute the activities associated with retail CBDC accounts in the private and public sectors.
Project Sela further aimed to establish a digital means of payment that retains the desirable attributes of cash and maintains an appropriate level of privacy for its users. The features include being free from credit risk, being widely accessible, a safe means of payments and storing values, the ability to complete settlements and low operation costs instantly.
Sela Introduces Novel Type of Intermediary
One of th
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Author: Jana Serfontein
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