Bank of England Advances CBDC Program, Explores Multiple Ledger Technologies
The Bank of England (BoE) has made significant progress in its efforts to develop a central bank digital currency (CBDC). Tom Mutton, the BoE’s director of fintech, recently discussed the privacy aspect of the CBDC and highlighted the bank’s exploration of alternative technologies beyond blockchain.
During a recent meeting of technologists convened by the BoE to discuss the design of the digital pound, there was a divergence of opinions on the choice of ledger for the CBDC. As a result, the bank plans to conduct trials using various ledger technologies, including blockchain.
Initially referred to as Britcoin, the development of a digital pound was proposed when the United Kingdom’s Treasury Department and the BoE established a joint task force to investigate the potential of a UK CBDC in April 2021. In February 2023, the bank released a consultation paper outlining the proposed design of the digital pound.
At present, the BoE and the Treasury are actively seeking feedback from stakeholders and technology experts regarding the proposed CBDC design. The feedback period is open until June 30, allowing for valuable input from the industry.