Digital Pound Lab to be Launched in England

Date: 2025-01-16 Author: Henry Casey Categories: IN WORLD
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The Bank of England is planning to launch a “Digital Pound Lab” in collaboration with HM Treasury. The initiative is aimed at developing a central bank digital currency (CBDC), which will only be implemented after parliamentary approval.

The new lab will serve as a platform for testing the digital pound API in real-life conditions and analyzing current approaches to payment systems. The main objective will be to engage private companies in developing solutions that will improve the technological capabilities and functionality of the future currency.

Previous surveys and focus groups have identified existing problems in current payment systems. Although the details of these problems have not been disclosed, the lab aims to eliminate the identified shortcomings and create effective solutions.

The lab’s work will focus on testing possible use cases for the digital pound and analyzing its technological and operational viability. The results of the tests will be used to form a prototype of the future currency.

The Bank of England will also publish special reports detailing key aspects of the digital pound concept. These will form the basis for discussions with stakeholders and experts.

In addition, attention will be paid to exploring emerging trends in payments, private sector innovation, changes in the use of cash, upgrades to the country’s payments infrastructure and the impact of global factors.
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