CBDC Archives - The Block

Bank of England, BIS complete distributed ledger settlements pilot

The Bank of England and Bank for International Settlements (BIS) have completed a joint pilot testing a distributed ledger technology-based settlements system between institutions.

The UK central bank plans to take lessons from the project and apply them to its real-time gross settlement (RTGS) system.

BIS has also published a 44-page report on the project. Titled Project Meridian, it was carried out with the Bank of England at the BIS innovation hub in...

20 April 2023 | Legislation & Government

SWIFT progresses CBDC project after strong pilot results

Global banking system SWIFT is moving to the next phase of its central bank digital currency (CBDC) testing after positive results in the pilot stages.

The interbank network said its project to connect different nations’ CBDCs with one another offers “clear potential and value” in a statement on 9 March.

Lewis Sun, global head of domestic and emerging payments at HSBC, said: “While interest in CBDCs is growing, so is the risk of fragmentation as a widening range...

10 March 2023 | Banking

Bank of England details digital pound model, calling plans ‘likely’

The UK is moving forward with its central bank digital currency (CBDC) plans after publishing an in-depth consultation paper on the proposed digital pound, which has been dubbed “Britcoin”.

In its 116 pages, the paper details the Bank of England (BoE) and UK Treasury’s stance on the “likely need” for a digital pound and their proposed model. A technology working paper was also released to explain technical design concepts and decisions.

The paper reiterates the...

8 February 2023 | CBDC

Turkish central bank completes first CBDC trials for digital lira

Turkey’s central bank has completed the first of its trials for the country’s central bank digital currency (CBDC), the Digital Turkish Lira.

The Central Bank of the Republic of Turkey (CBRT) announced on 29 December that it had successfully completed the “first payment transactions” to use the digital lira.

Limited, closed-circuit pilot tests with key stakeholders will continue into the first quarter of 2023, after which the pilot is expected to integrate...

30 December 2022 | CBDC

Visa will ‘actively contribute’ to web3 development

Visa refuses to become a dinosaur and will “actively contribute” to developing the web3 and crypto ecosystem.

Aside from maximalists, few experts believe that crypto poses an existential threat to fiat currencies. Legacy payment processors like Visa and Mastercard have increasingly been joining the web2-era disruptors like PayPal and Square in supporting the web3 and crypto ecosystem.

Greater public adoption of “crypto” will likely come through CBDCs (Central...

20 December 2022 | Altcoins

Reserve Bank of India goes in-depth on its CBDC plans

The Reserve Bank of India (RBI) has released a 51-page report outlining the proposed features of its in-development central bank digital currency (CBDC).

The report details the pros and cons of a digital rupee for India whilst also trying to raise awareness for the reasoning and objectives behind CBDC development.

Key motivations for issuing a CBDC, according to the report, include the promotion of trust, safety, liquidity, and settlement finality.

Reducing the...

10 October 2022 | CBDC

BIS declares cross-national Asian CBDC pilot successful

The Bank for International Settlements (BIS) has declared a multinational central bank digital currency (CBDC) pilot a success.

More than £20.5 million was transacted during the month-long testing phase between commercial and central banks in Hong Kong, Thailand, China, and the United Arab Emirates (UAE).

Initially £11 million worth of value was issued amongst participants, which then facilitated 164 foreign exchange transactions and cross-border payments between the...

28 September 2022 | Banking

Ripple: Most financial institutions plan to use crypto within three years

A report by Ripple suggests that most financial institutions plan to start using crypto within the next three years.

Despite the bear market, financial institutions remain interested in the cryptocurrency space. Just this week, $10 trillion asset manager BlackRock launched a spot Bitcoin trust while saying that it’s also exploring “permissioned blockchains, stablecoins, cryptoassets, and tokenization.”

While BlackRock is exploring the potential financial benefits...

12 August 2022 | Altcoins

2.6 million Shenzhen residents sign up for digital yuan airdrop

More than 2.6 million of Shenzhen’s 18 million residents signed up for the Chinese city’s upcoming airdrop of 30 million digital yuan, or e-CNY.

City officials announced the airdrop two months ago as part of a recovery plan to stimulate consumer spending after the country’s most stringent coronavirus lockdown to date.

Digital yuan is the Chinese government’s take on a central bank digital currency and, although still in its pilot stage, has seen millions of...

15 July 2022 | CBDC

Millicent Labs demos full-reserve digital currency for UK government

Blockchain fintech company Millicent Labs has completed a sandbox test for a full-reserve digital currency (FRDC) with co-funding from the UK government’s Research and Innovation branch.

An FRDC is a privately issued digital currency pegged to a fiat currency, according to Millicent. The company believes it avoids the pitfalls of central bank digital currency and stablecoins while bridging blockchain technology with traditional finance.

Millicent plans to introduce a...