Bank of England is closer to launching its own CBDC, colloquially known as “Britcoin,” according to Rosalind findings.
The Bank of England (BOE) is approaching the launching of its digital currency following the conclusion of a year-long project that determined the technology could facilitate a “diverse range” of new monetary applications.
The BOE and the Bank for International Settlements (BIS) conducted the Rosalind project to investigate the viability and prospective benefits of a CBDC.
The Rosalind Project’s Results
The BIS’s recently published report from the experiment’s first phase revealed that a CBDC could expedite and simplify person-to-person payments, facilitate the development of innovative financial products, and reduce instances of fraud. It could also introduce the “programmability” concept to currency.
These preliminary results strengthen the BOE’s case for establishing its own CBDC, colloquially known as “Britcoin.” While the BOE has indicated that a CBDC will likely be required in the future, it is currently unnecessary.
The decision will be made following the conclusion of the technology consultation at the end of June, with the endorsement of the UK Treasury required.
In response to concerns that CBDCs could compromise the privacy of individuals by providing central banks and governments with information about their spending patterns, Verdian argued that this was a fallacy and that Project Rosalind demonstrated that confidentiality could be maintained
CBDC And Related Issues
The director of the BIS Innovation Hub London Centre, Francesca Hopwood Road, expressed confidence that Rosalind could significantly impact the global design of retail CBDC systems.
The Bank of England has been criticized for pursuing a Digital Pound without adequately articulating its benefits. Former BOE Governor Lord Mervyn King termed it a “solution without a problem.”
Before Project Rosalind, Verdian observed that digital currency discussions were predominantly theoretical and policy-based. Although CBDCs have been introduced in other nations, The success of many has been limited.
For instance, the Bahamas Sand Dollar’s technology needed to be more resilient, resulting in frequent disruptions, and Nigeria’s CBDC failed to acquire traction due to the absence of perceived benefits.
