The Bank of England will launch a Digital Pound Lab as it develops a blueprint for the design phase of future Britcoin.
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Digital Pound Lab operates in a sandbox environment, enabling hands-on experimentation to test API functionality, innovative use cases, and potential business models for PIPs and ESIPs.
The Bank’s Consultative Groups, Engagement Forums, and Academic Advisory Groups will continue, but the Technology Forum will end. The bank said its technology-focused efforts will continue, but will be more direct and in-depth with support from the Digital Pound Lab.
At the same time, the Bank has published the first in a series of design notes outlining new thinking on specific topics related to the digital pound. The published design notes identify key components that the Bank and Treasury will consider when developing the blueprint.
Blueprints are one of four workstreams in the Digital Pond design phase. The aim is to provide a comprehensive proposal for a digital pound, including technology, operational, ecosystem, commercial, regulatory and financial considerations, and the role that both the Bank and the private sector can play in delivering a digital pound. is.
Once completed, the blueprint will be a record of the proposed model and design of a potential digital pound, and will form the basis for assessing benefits and costs, the central bank said.
The bank and the Treasury proposed a public-private platform model for the provision of a digital pound. In this model, banks build and operate the ledger, and regulated private companies access the core infrastructure through APIs. Private companies will be able to handle all user interactions, including processing customer information, and use the digital pound to develop and offer innovative services.
“As with all work in the design phase, no decision has yet been made on whether to build a digital pound,” the Bank said. “The Design Notes do not represent final policy or design decisions, nor do they represent policy proposals that we are formally consulting on.
“Once the design phase is complete and taking into account the evolution of the broader payments environment, banks and governments will decide whether to proceed with building a digital pound. ” if Congress passes the relevant basic legislation. ”
