• Project Rosalind explored how a universal and extensible application programming interface (API) layer could connect central bank and private sector infrastructures and facilitate retail CBDC payments.
• The joint Bank for International Settlements and Bank of England project experimented with ecosystem innovation to identify a range of retail CBDC use cases.
• The project provided lessons on key aspects of a retail CBDC system, such as API design, privacy models, security and private sector programmability.

Project Rosalind has demonstrated that a well designed API layer could work with different private sector applications and central bank ledger designs and that a set of simple and standardised API functionalities could support a diverse range of use cases.

The completed initiative, a joint experiment run by the BIS Innovation Hub London Centre and the Bank of England around central bank digital currencies (CBDCs), developed 33 API functionalities and explored more than 30 retail CBDC use cases.

These use cases covered a broad range of domains for individuals and businesses, such as peer-to-peer transfers, retail payments for goods and services and small-value business transactions.

A diverse range of payment options were tested, such as making retail CBDC payments online, in stores and offline, with the use of near-field communication and via interactions with point-of-sale, QR codes, mobile phones, smartcards, biometric devices and smart assistants. Some of the use cases also explored private sector programmability and micropayments.

The project looked at how a universal and extensible API layer could be developed to connect central bank and private sector infrastructures, facilitate payments in CBDCs and support innovation. It was based on a two-tier CBDC model where the central bank issues CBDC and provides the ledger infrastructure and the private sector offers user-facing services.

The project also experimented with and provided valuable lessons on many key aspects of a retail CBDC system, such as API design, privacy models, security, standards, offline payments, private sector programmability, and ecosystem roles and responsibilities.

The project was delivered in collaboration with central banks, academia, and the private sector.

Francesca Hopwood Road, Head of the BIS Innovation Hub London Centre

We’re proud to announce our role as part of the vendor team for #ProjectRosalind. The project, led by the @BIS_org and the @BankOfEngland, explored how application programming interfaces could be used for central bank digital currency systems.#CBDChttps://t.co/y44Jxasws4

— Quant (@quant_network) June 16, 2023

Quant collaborates with BIS and the Bank of England on Project Rosalind

We’re proud to announce our role as part of the vendor team for Project Rosalind. The project, led by the Bank for International Settlements and the Bank of England, explored how application programming interfaces could be used for central bank digital currency systems.

Project Rosalind, directed by the BIS Innovation Hub London Centre, has been testing how APIs could facilitate retail payments in CBDCs and support the exploration of innovative CBDC use cases. The project looked specifically at a public-private sector collaboration model in which the public sector would provide core infrastructure, and the private sector would produce consumer-facing applications. Collaborating with many participants in the ecosystem, the project 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.

Another important outcome was innovation through exploring use cases – a world-first – that tested how CBDCs could support a more digitalised economy in the future. We contributed to the work in designing and developing API functionalities to support innovation and to enable private sector programmability.

We worked with our partners UST, a leading digital transformation company, on the project, with the Quant team providing the underlying infrastructure and blockchain platform, secure smart contracts and interoperability of central bank ledgers, and UST building the frontend Rosalind API layer.

Gilbert Verdian, our Founder and CEO, said: “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. We encourage 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.

Source: Quant

Barclays’ Chief Technology Office participated in Project Rosalind, a joint experiment on a retail central bank digital currency (CBDC) led by the Bank for International Settlements’ Innovation Hub London Centre and the Bank of England.

Barclays prototyped a novel use case of… pic.twitter.com/LiDuyEIvNV

— Rise Global (@ThinkRiseGlobal) June 16, 2023