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Top cryptocurrency news: UK Consortium to Test Digital Sterling Payments and Share Findings with BoE

18-Aug-2022 By: Divya Behl
Top cryptocurrency n

A United Kingdom-based tech group has announced intentions to test cross-border payments and share recommendations with the Bank of England (BoE).

According to a press release published on August 17, the Digital Financial Market Infrastructure (DFMI), also known as the Digital FMI Consortium, a group of private-sector organizations, will carry out the test using the Bank of England's prototype sterling-backed coin, the Digital Sterling (dSterling).

According to the group, the trials aim to conduct real-world testing to assess the sustainability of the cryptocurrency ecosystem, environment, and economy.

Test to determine the co-existence of different currencies 

The test particularly aims to evaluate the coexistence of current forms of currency, regulated cryptocurrencies, and stablecoins, as well as Central Bank Digital Currencies (CBDC).

The pilot test, dubbed Project New Era, will begin in October and will last 12-24 months, with Digital FMI expecting to submit a white paper and suggestions to the Bank of England and other authorities.

"The world is experiencing an irreversible financial transformation. With the introduction of DLT and blockchain technology, digital assets are ushering in a new age for currency, with potentially transformative benefits for individuals, companies, financial institutions, and states," said Kunal Jhanji, MD at Boston Consulting Group.

In particular, the DFMI Consortium includes key financial institutions such as commercial banks, payment providers, telecom providers, FinTechs, non-fungible tokens (NFT) ecosystems, and cryptocurrency exchanges.

UK’s push to become a crypto hub 

It is also worth noting that the initiative is part of the United Kingdom's aim to become a worldwide cryptocurrency hub, with regulators trying to implement suitable legislation.

Already, the BoE is investigating the possibility of launching a CBDC, with other government organizations publishing multiple studies regarding the sustainability of cryptocurrencies.

As CoinGabbar earlier reported, the All-Party Parliamentary Group (APPG) has launched an inquiry to investigate the need for more regulation for the UK crypto industry. The APPG is anticipated to solicit feedback from cryptocurrency operators, regulators, industry experts, and government organizations such as the Bank of England and the Financial Conduct Authority.

Read also: Top Cryptocurrency news: Do Kwon, the founder of Terra, has hired attorneys to prepare legal actions.

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