Search Results for: Project Sela

“Project Sela, a joint initiative led by BIS, and the central banks of Hong Kong and Israel, points to the feasibility of CBDCs settling on centralized ledgers while ensuring privacy. Addressing cost factors and potential risks, it put forth an efficient solution, ‘Access Enabler,’ that allows network settlement without merchants retaining users’ CBDC. This opens a promising pathway for digital currencies to potentially become a universally accepted retail payment form.”

“Israel and Hong Kong have completed their retail central bank digital currency (rCBDC) test runs, focusing on private participation, inclusivity, and security. Project Sela merges cash characteristics with digitization benefits, addressing policy, security, technology, and legal issues. However, real-time gross settlement (RTGS) system limitations and developmental challenges remain.”

“Project Sela showcases the potential of central bank digital currencies (CBDCs), implementing a novel intermediary approach to reduce liquidity risk. Dealing with concerns about cybersecurity and privacy, it signals a future where transactions settle directly on the central bank’s ledger, inspiring global central banks’ digital transformation.”

“France, Singapore, and Switzerland recently experimented with cross-border Central Bank Digital Currencies (CBDCs) using public blockchain and DeFi technology in a venture named Project Mariana. Despite successful trials, further investigation and iterations are required to fully understand the complexities of implementing such systems.”