Bank of England: digital pound could run on conventional software, not blockchain

The Bank of England (BoE) digital pound may ultimately run on conventional software rather than blockchain. This was stated by Tom Matton, the head of the CBDC project, according to Bloomberg.

According to him, authorities are currently weighing the case for creating a “Britcoin.” At a recent technologists’ meeting, no one agreed with anyone else, Matton noted.

The Bank plans to trial several ledgers, including public blockchains. Proponents say the technology is more efficient than traditional payment systems.

“We definitely want to be compatible with private-sector distributed-ledger business models, but we were not sure they offered greater efficiency than conventional systems,” a BoE spokesperson said.

The CBDC is likely to be issued without branding from the Bank of England, as consumers would access digital pounds via wallets developed by third-party companies.

In April 2021, the BoE and the Treasury created a joint working group to study the CBDC. The Lords’ Economic Affairs Committee joined the process.

The department initiated the first public discussions on “Britcoin” in 2022. Officials studied use cases, key issues and potential implications of implementing the technology for business and individuals.

But later, BoE Governor Andrew Bailey doubted the need for a digital pound.

In February 2023, the UK Chancellor of the Exchequer Jeremy Hunt stated that the CBDC launch is possible within this decade, but not before 2025.

As reported, the head of the BoE’s digital division Katy Fortune allowed the existence of an ecosystem of different forms of money, including national currencies, crypto assets and stablecoins.