Bank of England to test stablecoin, digital currency use in cross-border finance
The BOE-led Digital Pound Lab will test trade-finance interoperability, in which exporters receive stablecoins while importers settle in a potential digital pound.
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Summary
- The Bank of England’s digital pound project entered Phase 2, testing how public stablecoins and central bank money can operate together in a single payment flow for trade finance.
- Working with NOBO Finance, Dun & Bradstreet and Polygon Labs in its Digital Pound Lab, the BOE will explore creating reusable credit profiles for small enterprises and using stablecoins alongside a potential digital pound for invoice factoring.
- The experiments, which do not involve real customers or money, are intended to inform the BOE and the Treasury’s assessment of how different forms of digital money can interoperate.
