TechFlow reports that on July 30, according to Coindesk, the Bank of England plans to conduct a series of experiments on wholesale central bank digital currency (wCBDC) and distributed ledger technology (DLT) to adapt to changes in the payments landscape and assess the opportunities and risks associated with fintech developments. The Bank noted that as cryptocurrencies and their underlying DLT gain traction, central banks worldwide are exploring how to engage with these technologies. The Bank has participated in the Bank for International Settlements' Agora project, testing the exchange of tokenized commercial bank deposits and central bank money across multiple banks via a single platform.
In the introduction to the discussion paper, Bank of England Governor Andrew Bailey stated: "Confidence in money and payments is fundamental to the Bank's responsibility for maintaining monetary and financial stability. As innovation in this space continues to evolve, so too must our role, to support a strong and dynamic UK economy." The Bank said it will collaborate with the Treasury, the Payment Systems Regulator, and the Financial Conduct Authority to ensure the unity of money is preserved—even in cases involving stablecoins—and that all forms of money, including cash and bank deposits, remain mutually interchangeable.
