Bank of England CBDC Trial to Test Stablecoin Interoperability with Pound Sterling

IconCryptoNewsTerminal Staff30 Jul, 2024

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Bank of England CBDC Trial to Test Stablecoin Interoperability with Pound Sterling

The Bank of England (BOE), the central bank of the United Kingdom, has announced that its upcoming central bank digital currency (CBDC) trial will involve the testing of stablecoins that are interoperable with the British pound. The BOE will reportedly experiment with the seamless exchange of value between CBDC, stablecoins, bank deposits, and physical cash. This trial is a significant step towards exploring the potential of CBDCs and stablecoins in the UK financial system. The BOE has stated that it "will work with the financial authorities to ensure that the singleness of money is maintained, even with the introduction of stablecoins." The CBDC trial is expected to provide valuable insights into the potential benefits and challenges of CBDCs and stablecoins. The BOE's involvement in this trial demonstrates its commitment to exploring innovative technologies that could improve the efficiency and inclusivity of the UK financial system.

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