According to U.Today, major British banks, including Barclays, have participated in a trial focused on testing tokenized deposits. The trial, which began in February, also includes Mastercard and Visa, the world's largest credit card networks. The technology is not expected to be commercially available for some time, with the trial anticipated to last up to three years. The initial results of the ongoing trial are set to be disclosed in late summer.
Tokenization is gaining traction in the UK. A government-supported technology group recently released a report urging local companies to explore this innovative technology, which could enhance the efficiency of the banking sector. The group had previously called on regulators to establish clear tokenization rules.
The Bank for International Settlements (BIS), representing the world's largest central banks, also launched a tokenization project named Agora earlier this month. The project aims to bring together central and commercial banks through shared infrastructure. Early participants include the Bank of Japan and the Bank of France. Agora's primary goal is to address the main issues of cross-border payments.
The BIS's 2024 Innovation Hub work program also includes other projects, such as Project Aurum, which will concentrate on the privacy aspect of retail Central Bank Digital Currencies (CBDCs). Meanwhile, the future of 'Britcoin,' the digital pound, remains uncertain according to recent reports. The Bank of England began exploring the concept in 2021.
