Bank of England Inches Closer to Launch CBDC Soon

• The BOE and the Bank for International Settlements (BIS) collaborated on a project.
• The Bank of England’s first results provide credence to the institution’s decision.

After a year-long examination, the Bank of England (BOE) has come to the conclusion that blockchain technology might enable a “diverse range” of new monetary applications, bringing the BOE one step closer to introducing its own digital currency. The BOE and the Bank for International Settlements (BIS) collaborated on a project called Rosalind to investigate the viability and possible advantages of a CBDC.

Moreover, the BIS recently issued a paper detailing the results of the first stage of the trial, which found that a CBDC might facilitate faster and easier P2P payments, allow for the development of novel financial products, and minimize fraud. The term “programmability” may likewise be used to currency as a result.

Banking on Project Rosalind

Furthermore, the Bank of England’s (BOE) first results provide credence to the institution’s decision to introduce its own CBDC, colloquially dubbed “Britcoin.” The BOE has signaled that a CBDC will be required at some point. With the UK Treasury’s approval, the decision will go forward when the technological consultation concludes at the end of June.

In response to those who worry that central banks and governments may have too much access to personal financial data via CBDCs, Verdian claimed that such fears are unfounded, pointing to the success of Project Rosalind as proof.

The head of the BIS Innovation Hub in London, Francesca Hopwood Road, believes that Rosalind will have a major impact on the future of CBDC in retail.

The Bank of England has taken heat for pushing towards a digital version of the pound without providing sufficient justification for doing so. Lord Mervyn King, a former governor of the Bank of England, called it a “solution without a problem.”

Prior to Project Rosalind, Verdian observed that conversations on digital currencies tended to focus on theory and policy. CBDCs are not new; several have been tried elsewhere, with mixed results.