News That Matters

Tag: project cedar

Project Cedar: Improving Cross-Border Payments With Blockchain Technology
Technology

Project Cedar: Improving Cross-Border Payments With Blockchain Technology

Project Cedar is the inaugural project of the New York Innovation Center (NYIC). It is a multiphase research effort to develop a technical framework for a theoretical wholesale central bank digital currency (wCBDC) in the Federal Reserve context. In Phase I of Project Cedar, a prototype for a wholesale central bank digital currency was developed to demonstrate the potential of blockchain to improve the speed, cost, and access to a critical element of the wholesale cross-border payments market—a foreign exchange (FX) spot transaction. Problem Space Wholesale cross-border payments are financial transactions between central banks, private sector banks, corporations, and other institutions based in separate jurisdictions. FX spot trades are among the most common wholesale cross-borde...