According to TechFlow, on July 30, Coindesk reported that the Bank of England plans to conduct a series of experiments on wholesale central bank digital currency (wCBDC) and distributed ledger technology (DLT) to adapt to changes in the payment field and evaluate the opportunities and risks of financial technology development.
The Bank of England pointed out that with the rise of cryptocurrencies and their underlying DLT, central banks are exploring how to interact with these technologies. The Bank of England participated in the Agora project of the Bank for International Settlements to test the exchange of tokenized commercial bank deposits and central bank currencies between multiple banks on a single platform.
Andrew Bailey, Governor of the Bank of England, said that confidence in money and payments is the fundamental responsibility of banks to maintain monetary and financial stability. The Bank of England will work with the Treasury, the Payment Systems Regulator and the Financial Conduct Authority to ensure that the singleness of currency can be maintained even when stablecoins are involved, ensuring that all forms of currency, such as cash and bank deposits, are convertible.