The central bank of England is proposing a Real-Time Gross Settlement (RTGS) system and wholesale central bank digital currency (wCBDC) to assess their settlement capabilities and interoperability.
This was announced in a discussion paper. The Bank has committed to conducting these experiments within the next six months.
The trials will primarily focus on comparing the settlement of CBDCs with the synchronization of non-CBDC central bank money, as tested in Project Meridian. A synchronization network connects with existing RTGS systems.
Both approaches rely on distributed ledger technology, but the BoE expresses caution about its potential impact on monetary and financial stability.
