Pioneering API prototypes for Central Bank digital currencies

In a significant stride towards the future of digital currencies, UST, a leading digital transformation solutions company, has emerged as a key innovation vendor for Project Rosalind. This ground-breaking experiment, initiated by the Bank for International Settlements (BIS) and the Bank of England (BOE) through the BIS Innovation Hub London Centre, aims to revolutionize the distribution of central bank digital currencies (CBDC) through application programming interfaces (APIs).

Under the collaborative framework of Project Rosalind, UST worked closely with BIS and BOE to develop and test prototypes for an API layer tailored specifically for retail CBDCs. With the potential to disrupt and drive innovation across various sectors, CBDCs have garnered significant attention in recent years. UST’s expertise played a crucial role in organizing the API development efforts, conducting innovation sessions, and constructing a secure and functional API layer.

The development process involved the creation of a prototype API layer comprising thirty-three API endpoints, categorized into six functional groups. More than thirty use cases were meticulously identified and explored by collaborators from the public and private sectors, allowing for comprehensive testing and validation of the API architecture and features. The successful outcomes of Project Rosalind demonstrated that central banks can leverage API layers to distribute CBDCs safely to consumers through private sector service providers, while simultaneously enhancing privacy, accountability, and convertibility.

UST’s pivotal contributions extended beyond API development. The company partnered with Quant, a pioneering blockchain platform for finance, to provide the underlying infrastructure for the project. By combining their strengths, UST and Quant facilitated a seamless collaboration that streamlined the creation of an outstanding product.

Francesca Hopwood Road, Head of the BIS Innovation Hub London Centre, expressed her satisfaction with the results, stating, “The Rosalind experiment has advanced central bank innovation in two key areas: by exploring how an API layer could support a retail CBDC system and how it could facilitate safe and secure CBDC payments through a range of different use cases.”

Krishna Sudheendra, CEO of UST, emphasized the transformative potential of digital currencies, saying, “Digital Currency has the potential to transform financial enterprises and revolutionize the end-user experience. The success of Project Rosalind with UST showcases how public-private collaboration and innovation can significantly accelerate time to market for solutions and result in tangible benefits for everyone.”

Tanveer Mohammed, Head of Innovation for the UK at UST, highlighted the company’s commitment to innovation and collaboration, stating, “At UST, innovation is at the center of all our transformation projects, and we put those principles into practice through this partnership. By leveraging our engineering experience and approaching the collaboration with an agile and aligned mindset, we were able to combine the strengths of each company to deliver an outstanding product.”

The BIS London Innovation Hub Centre, established in 2021, served as the prestigious base for Project Rosalind. It is one of six international nodes dedicated to developing technology-based public goods that support central banks and enhance the functioning of the financial system.

UST’s participation in Project Rosalind exemplifies its commitment to driving digital transformation. With a strong track record spanning two decades, UST has established itself as a key business transformation partner across dynamic industries. For more information on UST and its work in driving digital innovation, please visit the UST website.

The accomplishments of Project Rosalind extend far beyond its immediate scope. By showcasing the potential of a well-designed API layer to enable a central bank ledger’s interaction with private sector service providers for secure retail CBDC payments, the project has opened up possibilities for a robust ecosystem that fosters innovation and meets the needs of an increasingly digitalized society. The valuable insights and outcomes from this successful collaboration can be accessed here.

Tags: Project RosalindUST