Project Rosalind, a collaboration between the Bank for International Settlements (BIS) and the Bank of England, has recently announced its role as part of the vendor team. The project aims to explore the potential of application programming interfaces (APIs) in central bank digital currency (CBDC) systems.
Directed by the BIS Innovation Hub London Centre, Project Rosalind has been testing how APIs can facilitate retail payments in CBDCs and support the exploration of innovative CBDC use cases.
The project has focused on a public-private sector collaboration model, where the public sector provides core infrastructure, and the private sector produces consumer-facing applications.
By collaborating with many participants in the ecosystem, Project Rosalind has proven that APIs could play a key role in enabling CBDC systems to deliver a range of benefits in terms of payments functionality and security.
One of the most important outcomes of Project Rosalind has been innovation through exploring use cases. This world-first project has tested how CBDCs can support a more digitalized economy in the future.
The project has contributed to the work in designing and developing API functionalities to support innovation and enable private sector programmability.
Project Rosalind has partnered with UST, a leading digital transformation company, on the project.
The Quant team provided the underlying infrastructure and blockchain platform, secure smart contracts, and interoperability of central bank ledgers. UST built the frontend Rosalind API layer.
Gilbert Verdian, Founder and CEO of Quant Network, said that "for the first time, money is ready for the digital age." A CBDC will enable citizens and businesses to automate cumbersome payments and processes and implement logic into money.
For commercial banks and other institutions, the opportunity to apply this programmability to create innovative new products that differentiate themselves from challengers and competitors is almost endless. He encourages every bank and financial institution to read the Project Rosalind report and start planning their smart money infrastructure strategy.
The London Innovation Hub Centre was established by Switzerland-headquartered BIS in 2021 and is one of six international nodes working to develop public goods in the technology space to support central banks and improve the functioning of the financial system.
In conclusion, Project Rosalind is an exciting project that explores the potential of APIs in CBDC systems. The project has shown that APIs can play a key role in enabling CBDC systems to deliver a range of benefits in terms of payments functionality and security.
With its focus on innovation through exploring use cases, Project Rosalind has contributed significantly to the development of API functionalities that support innovation and enable private sector programmability.