The Bank of England (BOE) is getting closer to launching its own digital currency, as the project nears completion. The project, named Rosalind and run by the BOE and the Bank for International Settlements (BIS), aims to explore the practicality and potential benefits of CBDC.
A recently published report from the first phase of the trial, released by the BIS, reveals that CBDC can speed up and simplify transactions, enable the creation of innovative financial products and reduce fraud.
This initial finding has led many to speculate that the BoE will launch its own CBDC, informally referred to as “Britcoin.” At the same time the BOE has indicated that CBDC will be needed in the future.
Addressing concerns that CBDCs could affect individual privacy, Verdian argued that this is a misconception and that the Rosalind Project shows that privacy can be maintained. Francesca Hopwood Road, head of the BIS Innovation Hub London Centre, expressed confidence that Rosalind could significantly influence the design of CBDC systems around the world.
On the other hand, the Bank of England has faced criticism for pursuing the Digital Pound without fully explaining its advantages.
Before the Rosalind Project, Verdian stated that the discussion about digital currency revolved around theory and policy orientation.
