‘Britcoin’ On The Horizon After Project Rosalind
The Bank of England (BoE) has inched closer to launching its anticipated central bank digital currency (CBDC), colloquially known as “Britcoin,” following the successful completion of an exploratory study, Project Rosalind.
A Joint Venture of Exploration
The Bank for International Settlements and the BoE launched this groundbreaking joint experiment in July 2022. The aim was to explore the practicality of using prototypes of an application programming interface (API) in retail CBDC transactions.
Positive Outcomes from Phase Two of Project Rosalind
A comprehensive report released on June 16 encapsulating the results of Project Rosalind’s second phase found a CBDC could streamline and reduce the costs associated with peer-to-peer payments. It also posited that firms could create novel financial products aimed at mitigating fraudulent financial activity.
Exploring Over 30 CBDC Use Cases
Project Rosalind developed and explored 33 API functionalities across more than 30 retail CBDC use cases. The study examined how a CBDC would operate on various platforms such as smartphones, retail vendors, and online stores, and delved into the concept of “programmability.”
Overcoming the Hurdles of Programmability
Programmability in CBDCs refers to the ability to customize digital money to behave in specific ways once certain conditions are met. Despite significant skepticism surrounding this concept, the study concluded that a well-designed API layer could facilitate safe and secure retail CBDC payments.
The Future of Britcoin: A Final Decision Pending
Despite Project Rosalind’s positive outcomes, a final decision on the launch of Britcoin is still on hold. According to Deputy Governor Jon Cunliffe, this decision could still be “some years” away. However, current odds for a CBDC project greenlight stand at “seven out of ten.”
The Impact on the Cryptocurrency Market
On the day Project Rosalind’s findings were released, enterprise blockchain Quant Network, a vendor in the study, announced its participation. This news prompted a more than 20% surge in the price of Quant’s native QNT token within 12 hours.