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Introducing the Codefi Payments Sandbox for Digital Currencies

This month ConsenSys launched the Codefi Payments Sandbox for central banks, banks, payment service providers, and corporations to facilitate digital currency discovery and experimentation.
by Nicole AdarmeApril 19, 2021
Codefi Payments Sandbox

According to 2021 findings by the Bank for International Settlements (BIS), 86% of central banks are actively researching the potential of Central Bank Digital Currencies (CBDCs), 60% are experimenting with the technology and 14% are deploying pilot projects. In line with this progress, banks and corporations are also considering issuing and using digital currencies on blockchain networks to power several use cases including interbank settlement, treasury management, grant distribution and retail payments.

BIS Central Banks Stats

In 2020, ConsenSys kicked off CBDC pilot projects with the Reserve Bank of Australia, France’s Societe Generale, the Bank of Thailand, and the Hong Kong Monetary Authority. utilizing CBDC technology from Codefi Payments.

Across these experiences, we’ve seen that issuing CBDCs and digital currencies raises numerous questions from both issuers and users. Central banks, banks, and payment service providers need to broaden their understanding of the new opportunities offered by digital currencies through a “hands-on” experience. 

This month ConsenSys launched the Codefi Payments Sandbox for central banks, banks, payment service providers and corporations to facilitate digital currency discovery and experimentation. The Sandbox enables digital currency issuers to design and build digital currency settlement infrastructure, and allows service providers to use the digital currency and build overlay services. Pre-registered customers have already been granted access to our Sandbox, and are working through onboarding to discover the breadth of platform features.

CBDC Sandbox Interface
Diagram 1: The Codefi Payments Sandbox Interface

Powered by Codefi Payments, the Sandbox is the result of six years of Ethereum technology development for this use case. It is significantly informed by our work with six central banks on CBDC pilots and our broader involvement in Ethereum and decentralized networks. 

The Sandbox is a permissioned ConsenSys Quorum network that comes pre-installed with digital currency functionalities, user interface, and built-in wallet. 

The Sandbox demonstrates stakeholder collaboration in a decentralized environment. There are 3 separate nodes and stacks that run by themselves as self-contained units. Each unit holds its own database, manages its own services instances, APIs and connections to their dedicated blockchain node. There is no “central” server or master node: no stack is more important than another. The only way that the units communicate is through the blockchain. On the blockchain, they can deploy, mint, transfer, burn tokens and others can read the events emitted by the smart contracts.

The Sandbox allows the design and deployment of a digital currency network in a few minutes to make digital currency pilots simpler, faster, and cheaper.

Upon requesting access to the Sandbox, customers will be guided through an onboarding process. They will be able to access the technology through the web application, the API, or through MetaMask wallets. Throughout the experience, ConsenSys will carry out workshops and discovery sessions in order to ensure customers maximize the platform’s functionality and gain value from the Sandbox.

CBDC Sandbox User Journey
Diagram 2: The Codefi Payments Sandbox User Journey
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Eager to learn more about digital currencies and the evolving roles of central banks, financial institutions, payment service providers, and wallet providers? Watch the webinar on-demand.