The Bank of England will conduct experiments on CBDC and distributed ledger technology

ChainCatcher news, the Bank of England stated that it plans to conduct a series of experiments on Distributed Ledger Technology (DLT) and wholesale Central Bank Digital Currency (wCBDC) to keep up with changes in the payment landscape and assess the opportunities and risks brought by the development of fintech.

The bank stated that it will work with the Treasury, payment system regulators, and the Financial Conduct Authority to ensure that the singularity of currency is maintained, even when stablecoins are involved. In other words, ensuring that all forms of currency—cash, bank deposits, etc.—can be exchanged for one another. In the discussion document, the bank indicated that it will conduct a series of experiments to ensure the singularity of currency is maintained between stablecoins and tokenized deposits (i.e., deposit claims represented on programmable platforms).