Catenaa, Saturday, January 18, 2025 – The Bank of England (BoE) has announced the launch of the Digital Pound Labs, a sandbox initiative to test a potential central bank digital currency (CBDC), also referred to as a “digital pound.”
In a Jan. 14 progress report, the BoE outlined potential use cases for a CBDC, business models, and a roadmap for testing blockchain-powered payment systems. The Digital Pound Labs aim to collaborate with private financial sector players and government bodies to address inefficiencies in the current payment systems.
The initiative signals a shift from the BoE’s previous Technology Forum, opting instead for a more interactive and hands-on approach. The labs will work alongside the Academic Advisory Group and Engagement Forum to refine policy and technological frameworks.
Despite launching the lab, the BoE and HM Treasury have not committed to proceeding with a CBDC. The next steps involve developing a detailed framework and further consultation, which could take years. Parliament’s approval and public input would be necessary before introducing any legislation for a digital pound.
The cautious approach comes after lawmakers expressed reservations about CBDCs in 2023, following the BoE’s initial discussion of a sovereign digital currency. The bank emphasized the need for thorough evaluation of the policy and technology landscape before moving forward.
