What is Project Dunbar primarily focused on?

Project Dunbar is primarily focused on enabling cross-border settlement across national central bank digital currencies (CBDCs). This initiative aims to facilitate more efficient and secure transactions between different nations' currencies, addressing the complexities and challenges associated with traditional cross-border payments. By utilizing CBDCs, Project Dunbar seeks to enhance the interoperability of digital currencies issued by central banks, which can lead to reduced transaction times and costs when transferring value internationally.

The emphasis on cross-border settlement is particularly relevant as global trade and financial connectivity continue to grow. Traditional mechanisms for cross-border payments can often be slow and costly due to the involvement of multiple intermediaries and varying regulatory standards. Therefore, by focusing on CBDCs for cross-border transactions, Project Dunbar is positioned to potentially transform how these payments are processed and settled on a global scale, contributing to more streamlined financial systems.

The other options do not align with the primary goals of Project Dunbar. The focus is not on developing retail payment systems for consumers, creating regulations for stablecoins, or exploring the use of Bitcoin, which is a decentralized cryptocurrency rather than a central bank initiative.