The Bank of England (BoE) is one step away from launching the central bank digital currency (CBDC) called “Britcoin” after the conclusion of an experimental study called Project Rosalind.
The Bank for International Settlements and BoE launched the joint experiment in July 2022 to explore how prototypes of an application programming interface (API) could be implemented in retail CBDC transactions.
A relationship June 16, outlining the second phase of the Rosalind Project. A CBDC can make payments between individuals cheaper and more efficientwhile enabling businesses to create new financial products that can reduce fraudulent financial activities.
Comprehensive, study developed 33 API features and discovered “more than 30 retail CBDC use cases”.
In addition to examining how a CBDC works in smartphones, retailers, and online stores, the study also explored the concept of “programmability,” a term that refers to customizing a digital currency to behave in certain ways under certain conditions.
There Programmability of CBDCs met with substantial doubtswhile critics argue that a CBDC can be programmed to “work against” those who use it.
In general, a “well-designed” API layer should work. It could allow a central bank to engage with the private sector to “securely deliver” retail CBDC payments..
The Rosalind project from #BISInnovationHub and @bankofengland in Central London explored how a universal and extensible API layer could connect central bank and private sector infrastructures and facilitate retail #CBDC payments.
Rosalind Project, #BIInovationHub Central London & @bank of englandexplored how universal and extensible it is. #API layer can connect central bank and private sector infrastructures and facilitate retail #CBDC payments pic.twitter.com/kDeo0yhrsR
— Bank for International Settlements (@BIS_org) 16 June 2023
“The Rosalind experiment enhanced central bank innovation in two key areas: exploring how an API layer can support a retail CBDC system and facilitate safe and secure CBDC payments in a range of different use cases.”Francesca Road, head of the BIS London Innovation Centre, says in a press release.
Despite the positive results of the Rosalind project, BoE Vice President Jon Cunliffe said the final decision on whether the country should launch a CBDC is still “several years” away.
according to a relationship Cunliffe told attendees at Politico’s Global Technology Day conference on Bloomberg on June 16 that the odds of a CBDC project moving forward are now “seven out of ten.”
On the same day, the results of the enterprise blockchain project Rosalind were announced. QuantNetwork have announced Role as a provider in research. The announcement saw the price of the QNT native token (QNT) climbed more than 20% from $96 to $117 in 12 hours by Quant.
Translation of Walter Rizzo