According to Odaily Planet Daily, the joint consultation between the Bank of England and the FCA on the UK digital securities sandbox ended last week, and the relevant feedback focused on two major issues: limits and digital currencies. The five-year digital securities sandbox was launched in January this year, temporarily relaxing the legal requirements of some central securities depositories (CSDs) and supporting experiments in distributed ledger technology (DLT) and tokenization. The Bank of England is considering using its real-time gross settlement (RTGS) system for synchronous settlement, but it did not specify whether or when it could be achieved. In addition, it mentioned the central bank comprehensive account facility.
UK Finance believes that not using on-chain digital currencies is a missed opportunity, especially for non-bank institutions. The Global Blockchain Business Council and the International Regulatory Strategy Group (IRSG) have also called for the use of systemic stablecoins in the sandbox. Regarding limits, UK Finance recommends setting them individually for each company rather than a global limit. IRSG warned that low limits could hinder the sandbox from attracting a large number of institutions, especially when testing large-scale projects such as digital gilts.