The Bank of England (BOE) asked applicants for a $244,000 contract to create a proof-of-concept (PoC) central bank digital currency (CBDC) wallet to offer questions regarding the project. The central bank responded by publishing its replies to more than 70 queries.
Applications for suppliers to submit were made available by the BOE on December 9. Before December 25, about 20 businesses turned in their applications and inquiries. After that, the BOE publicised the queries posed by the rival suppliers and provided its responses in an effort to shed light on the project.
The BOE claims that it plans to develop a back-end server for a core ledger, a mobile wallet app, and a retailer website. The bank made it clear that it will just utilise the PoC to increase its understanding and that it has not yet committed to creating a sample wallet.
The purpose of this PoC, according to the BOE, is to increase our knowledge and comprehension of the potential interactions between various CBDC products.
Though 28 applications were initially submitted, eight vendors withdrew following the question round. Nine small and medium-sized businesses and 11 large businesses submitted applications. The contract will be given to the selected applicant on January 31, according to the BOE.
In a live event that was aired on November 23, BOE representatives Andrew Bailey and Sir Jon Cunliffe responded to inquiries from MPs. Regarding digital currencies, the officials appeared to view CBDCs as a revolution in the way that money will be used in the future. The usefulness of money will undergo a revolution that is “driven by technology,” according to Sir Cunliffe.