Could a payment app work without ever holding your digital money?
Project Sela tested an intermediary model intended to widen access to retail CBDCs while keeping settlement at the central bank.
From the archive · 12 Sept 2023
A retrospective written for Chain Perspective. It describes the source at that date and does not imply current availability or status.
Reported development: · AI-assisted, source-linked brief
In brief
- An Access Enabler would provide customer services without holding CBDC.
- The model was explored jointly with Israel and Hong Kong.
The development
Project Sela examined a different division of responsibilities between payment providers and central banks. The BIS Innovation Hub, Bank of Israel and Hong Kong Monetary Authority explored a retail CBDC architecture with an intermediary called an Access Enabler. It would handle customer-facing services without holding users’ digital currency, while the central bank operated the core ledger and settlement infrastructure.
Why it matters
That separation could change which firms can afford to offer payment services: holding customer funds creates liquidity requirements and operational complexity. This is an architectural possibility, not proof that every provider would become cheaper or safer. Sela’s work also treated cybersecurity as a design requirement. The experiment is useful for understanding why the organization behind a wallet and the institution owing the money need not be the same.
Sources and verification
Based on an official announcement
Based on the dated primary source. This retrospective does not establish current availability or subsequent outcomes.
- Project Sela ↗Bank for International Settlements · Primary document · 12 Sept 2023
Prepared with AI assistance from the linked sources. This is not a claim of independent field reporting or human review. How we publish · Report a correction
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