HomeNewsBlockchain Triumph: Bank of England and BIS Forge Ahead with CBDC Trial,...

Blockchain Triumph: Bank of England and BIS Forge Ahead with CBDC Trial, Is Stellar (XLM) as Key Player Involved?

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  • The BIS Innovation Hub and Bank of England have announced the successful completion of a central bank digital currency (CBDC) trial named Project Rosalind.
  • The experiment primarily revolved around the use of application programming interfaces (APIs) and explored 18 use cases of the digital pound.

The BIS Innovation Hub and the Bank of England have unveiled the results of their collaborative venture, Project Rosalind. This initiative, set in motion to explore the potentialities of a central bank digital currency (CBDC), focused primarily on the integration of application programming interfaces (APIs) with the central bank’s ledger.

The APIs, in turn, interfaced with two distinct types of blockchain-based ledgers. Notably, the crux of these experiments was to examine the capabilities of the APIs rather than delve into the core system intricacies.

Project Rosalind cast a wide net, examining 18 potential scenarios for a digital pound. These ranged from simple merchant transactions to the more complex model of parent-child wallet structures. Other areas explored included different types of conditional payments, the possibility of offline transactions, and the implementation of decentralized identities and verifiable credentials for improved privacy.

Francesca Hopwood Road, Head of the BIS Innovation Hub London Centre, emphasized the importance of collaboration in the pursuit of these use cases. She stated,

“Active collaboration with the public and private sectors to identify and explore these use cases has been at the heart of this,”

and expressed her belief in Rosalind’s potential to influence global approaches to CBDC system designs.

Privacy considerations took center stage in these trials, with the APIs transmitting pseudonymous data to the central bank while leaving personal information in the hands of the payment providers.

The experiment uncovered that multiple simple, modular APIs could facilitate a considerable degree of standardization and flexibility for complex use cases. It even allowed service providers to introduce unique functionalities. However, concerns were raised that this degree of flexibility might lead to inconsistencies in user experience.

The two blockchains used in the trials were Hyperledger Besu, for an account-based digital pound, and Hyperledger Fabric, for a token-based solution. Quant’s Overledger technology was employed for multiple central bank ledger simulations and to enable the testing of the APIs with the two distributed ledgers. UST served as the technology consultant.

Meanwhile, the Bank of England has clarified that a digital pound, if launched, would not include programmable functionality at its core layer. While an official decision has not yet been made, Deputy Governor Sir Jon Cunliffe hinted at more than a 50% likelihood of moving forward with a digital pound.

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Nikita Dmitrievich
Nikita Dmitrievichhttps://www.ethnews.com/
Nikita, a young and ambitious crypto investor who has been actively involved in the cryptocurrency world for the past 6 years. With a keen interest in blockchain technology, Nikita has been investing in various cryptocurrencies and has seen significant returns on his investments. He is passionate about educating others on the potential of cryptocurrencies and frequently shares his insights on social media platforms. Nikita believes that cryptocurrencies are the future of finance and is constantly researching new projects to invest in. With his dedication and knowledge, Nikita is quickly becoming a prominent figure in the crypto community. Business Email: info@ethnews.com Phone: +49 160 92211628