The Bank of England opened a bid for a CBDC sample wallet proof of concept.
The United Kingdom (UK) believes in the potential of blockchain technology & ongoing innovations in the crypto sector but the Bank of England (BoE), the central bank, never supported cryptocurrencies as a means of better payment option and instead criticised it for its volatile nature. Bank of England working on central bank digital currency (CBDC) to bring modernization to its existing traditional payment systems.
On 9 December, The Bank of England opened CBDC Sample Wallet Proof of Concept and Research for the Fintech companies to contribute to the national digital currency project. The Central Bank set budget range for the initial five-month contract is 200,000 pounds ($245,200). Through the open bid, the Bank seeks to get proof of concept for a sample wallet for its Central Bank digital currency.
The last date to apply is 23 December 2022. The participants will require their expertise to develop a better concept test wallet for CBDC for Android & iOS supported devices.
The Central Bank confirmed that it will not design or develop the wallet itself, instead, it will increase the participants in the CBDC project to explore huge features.
“(Bank wants to explore) end-to-end user journey as a way to sharpen functional requirements for both the Bank and private sector” and make the CBDC product “more tangible for internal and external stakeholders.”
Bank also admitted that it has never done any work on the CBDC wallet and is willing to get a better design with multiple features in the budget of 200,000 pounds.
In the present time, the majority of the country’s Central Banks are doing their best to develop CBDCs because of the potential ability of blockchain technology. The majority of the Banks aims to make the payment systems better, more stable & efficient than the current operating abilities. In the race of CBDC, China is currently ranking at first position with its digital Yuan.
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BoE seeks a proof of concept for a sample wallet for CBDC