UK Blockchain Firm Pitches Its CBDC Operating System To Bank Of England

The blockchain news today are showing that as the monetary impacts of the coronavirus drive discussions regarding central bank cryptocurrencies, one UK blockchain firm has laid out the plans for a CBDC system to the Bank of England.

The United Kingdom based blockchain firm L3COS is in today’s updates for submitting a proposal to the Bank of England (known as BoE) for a system that will utilize blockchain technology and power a central bank issued digital currency, or CBDC.

As the UK blockchain firm described the proposal, it is a response to the consultation document on CBDC published by BoE in March. This document identified several benefits and challenges which were associated with central bank digital currencies, and invited further feedback from technology providers, financial institutions as well as academics.

One article published by the portal Verdict on June 12 shows that L3COS founder and CEO Zurab Ashvil proclaimed that the platform which the firm is working on can facilitate the creation of a CBDC for household and business payments.

“Commercial banks and other financial institutions will benefit from the Real-Time Gross Settlement System, or RTGS, that is built into the L3COS ecosystem,” Asheville said, arguing about the benefits of immutable and transparent digital ledgers, especially when used for government purposes.

Despite the ongoing enthusiasm that the UK blockchain firm has for a CBDC, the central bank emphasized that there “hasn’t been a decision yet on whether to introduce CBDC” in its March report.

On top of all this, we have the coronavirus-induced global crisis which brings a positive note in the cryptonews and potentially renews the discussions about CBDC among British politicians. The BoE digital currencies team manager Ben Dyson recently asserted that it is “the right time for us to be thinking about the future of money” during one webinar in April.

The same month, economists from ING including Carlo Cocuzzo and Teunis Brosens also spoke about the concept of a central bank digital currency in the UK, stating:

“The bigger role of governments and the close cooperation between them and the financial sector in combating the economic fallout will guide discussions about CBDC in the context of the role the financial sector has in serving society.”