The Bank of England Is Funding A Digital Wallet For A CBDC

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The Bank of England (BoE) is making strides in the central bank digital currency (CBDC) arena by handing over a contract to Kin + Carta, a consultancy firm, for creating a “CBDC Sample Wallet Proof of Concept and Research.” The contract, at £186,504 ($237,000), is the heftiest BoE has ever awarded for anything CBDC-related. A CBDC would give the government more control over the monetary system, including limiting and monitoring people’s spending and even having control over how they spend.

Global Trends: BoE is not alone; it’s riding the wave with other central banks across the globe, eyeing the establishment of a “major national infrastructure project” tied to a potential digital pound.

The Nitty-Gritty: Global Government Fintech spilled the beans – Kin + Carta, which operates out of London, got the contract rolling in February 2023, with a wrap-up date set for July 2023. The task? Build a proof-of-concept wallet, tucked under “software package and information systems.”

Public Chatter: The UK is all ears, currently seeking public opinion on the possibility of a digital pound. In a joint venture, BoE and HM Treasury dropped a consultation paper named “Digital pound: a new form of money for households and businesses?” earlier this year. The paper spills the tea – a digital pound might be in the cards and reveals a “design phase” through 2025 followed by a “build phase” not kicking off before 2025.

The Clock Ticks: The consultation was set to wrap up June 7th, but guess what? It’s been stretched to June 30th. Mid-decade could be when we hear the final verdict. And if the digital pound gets the green light? Expect a launch towards the tail end of the 2025-2029 window.

Deliverables: Kin + Carta has its work cut out. It’s tasked with producing a wallet mobile app (yes, for both Android and iOS), a wallet website, a sample merchant site, and a back-end server for user data and transactions.

Hello, Project Rosalind: The BoE isn’t stopping at a digital wallet; it’s aligning with “Project Rosalind”, which is cooking up an open API for a central bank ledger in cahoots with private-sector service providers. This is all happening at the BoE-based Bank for International Settlements (BIS) Innovation Hub. The digital wallet proof-of-concept will be a guinea pig for integration with the Rosalind API.

More Specs: It’s not just a wallet. The proof-of-concept must be capable of handling payments via account ID or QR code, and it’s setting the stage for future upgrades like offline payments and KYC processes for fresh users.

Global Parallel: BoE’s engagement with Kin + Carta isn’t an isolated event. The European Central Bank (ECB) is also in the game, as it’s been delving into the functionalities of a potential digital wallet for the Eurozone.

The post The Bank of England Is Funding A Digital Wallet For A CBDC appeared first on Reclaim The Net.


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