The Bank of England is designing a settlement service that could support a Central Bank Digital Currency.
In Brief:
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The realtime gross settlement service will be compatible with CBDCs.
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This is the system where financial institutions hold their accounts.
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Accenture has been chosen to redesign the network.
What does this mean?
The new version of the system is reportedly set to go live in 2022 and will include other capabilities as well as the ability to support a digital pound. Just a couple of weeks ago, Bank of England governor Andrew Bailey said the organisation was considering the development of a digital currency.
