The Bank of England is experimenting with distributed ledger technology and wholesale CBDCs to adapt to evolving payment systems. Governor Andrew Bailey emphasized the need to understand and support innovations safely.
Unlike retail CBDCs, wholesale CBDCs are digital currencies for financial institutions, enhancing the speed and security of large transactions. The bank aims to address interoperability challenges with a synchronization interface.
Public feedback is invited by the end of October. A recent report by the Bank for International Settlements shows a growing trend towards issuing wholesale CBDCs.
For more details, visit the Bank of England’s official report.
