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The Bank of England (BoE) has announced plans to launch the Digital Pound Lab, a financial innovation sandbox designed to explore the feasibility and potential of a UK-issued central bank digital currency (CBDC).
The central bank has said that this type of simulated environment will enable hands-on experimentation with application programming interfaces (APIs), use cases and new business models, providing insights into the CBDC's potential as a platform for innovation.
To support the lab, the BoE will also begin publishing design notes, outlining emerging ideas and fostering discussions with stakeholders. The first of these, a blueprint framework, has already been released.
The initiative builds on work that has been conducted through forums and advisory groups, including the CBDC Engagement Forum and the Academic Advisory Group.
“Given the technical nature of our current work in the design phase, our focus is presently on engagement with specialist stakeholders whose perspectives and expertise are critical to delivering high-quality technical design work and a robust assessment of a digital pound’s potential,” the central bank said in its update on progress.
The lab's efforts will be complemented by the newly established Payments Vision Delivery Committee, which aims to coordinate regulators and prioritise payments initiatives.
The work will be overseen by the joint HM Treasury and BoE Digital Pound Taskforce, ensuring coherence across governance bodies.
