• The Bank of England (BOE) published its answers to over 70 questions from companies who applied for the $244,000 contract to develop a central bank digital currency (CBDC) wallet proof-of-concept (PoC).
• The BOE is looking to create a back-end server for a core ledger, a mobile wallet application and a merchant website.
• The BOE clarified that it has not yet committed to developing a sample wallet and will only use the PoC to expand its knowledge.
The Bank of England has recently opened up applications for companies to win over a $244,000 contract to develop a central bank digital currency (CBDC) wallet proof-of-concept (PoC). The BOE received more than 70 questions from applicants regarding the project, to which it has now provided answers.
The BOE is looking to create a back-end server for a core ledger, a mobile wallet application and a merchant website. The bank clarified that it has not yet committed to developing a sample wallet and will only use the PoC to expand its knowledge. It stated that it is “using this PoC to deepen our knowledge and understanding of how CBDC products could possibly interact with each other.”
The bank answered specific questions such as “What is the expected date of completion?” and “What is the estimated budget for this project?” with the aim of providing applicants with a better understanding of the project. It also outlined its expectations for the PoC, such as the need for the wallet to be secure and compliant with the EU’s General Data Protection Regulation (GDPR).
The BOE also noted that the wallet should be compatible with existing payment infrastructure, such as cards and contactless payments. It also specified that the PoC should be “flexible enough to accommodate future changes” and should “allow users to easily switch between different currencies.”
The BOE is expected to announce the winner of the contract in the coming weeks. It is hoped that the successful company will provide the BOE with valuable insights into the development of CBDC wallets and how they could potentially interact with each other. This could help to pave the way for the BOE’s future plans to launch its own digital currency.