According to Techub News, 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.
In his introduction to the discussion paper, Bank of England Governor Andrew Bailey said: "Confidence in money and payments is a fundamental responsibility of banks to safeguard monetary and financial stability. As innovation in this area continues, our role must also evolve to support a strong and dynamic UK economy."
The Bank of England said it would work with the Treasury, the Payment Systems Authority and the Financial Conduct Authority to ensure that the singleness of currency is maintained even when stablecoins are involved, ensuring that all forms of currency, such as cash and bank deposits, are convertible into each other.
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