The Bank Of England Opens Offers For The CBDC Prototype Wallet

Bank of England seeks to create a CBDC (Central Bank Digital Currency) wallet and opened bids as a proof of concept for a sample wallet. It will accept applications till December 23, 2022.  

The Bank intends to create the user wallet by investigating the “end-to-end user journey to sharpen functional needs for both the Bank and private sector” and increasing the product’s popularity among internal and external stakeholders. The product’s key attributes include a wallet website, a mobile wallet application for iOS and Android, a merchant website, and a back-end server.

The Bank has allocated an estimated budget of 2,00,000 pounds ($245,000) for the initial five months contract. It will start accepting applications from December 16, 2022, and will receive final applications by December 23, 2022. The project will begin on Monday, January 16, 2023, and the contract’s expiry period lasts five months. The project offers an option to extend the end date by one month.  

Aims Of The Project

  • Search the end-to-end user journey to reduce the requirements of the Bank and private sector, and the Bank will support core CBDC functionality and lay out the payment procedure and user guidelines. 
  • Bank will facilitate making CBDC products more tangible for internal and external stakeholders.
  • Assist consumers in exploring additional features, such as offline services and the KYC procedure for potential comers.
  • Develop new features like mobile wallet applications, wallet websites, a merchant website, and back-end server-to-server to serve mobile applications & store user data and transaction history. 

Moreover, the bidding procedure is taking place at the same time that Chancellor of the Exchequer Jeremy Hunt shared a package of 30 regulatory improvements for UK financial services on Friday. Among these reforms was the creation of a digital pound. The so-called Edinburgh Reforms aim to encourage innovation and post-Brexit economic growth.

The Major Problems Addresses:

The project, in the process, will address to solve following problems: 

Wallet management services include:

  •  The sign-up process.
  •  Configuration of wallet types like business or individual.
  •  Viewing wallet balance.
  • Viewing existing security locks
  • Close wallets.
  • Updating wallet details
  • Offline view balance.
  • Provide transaction history. 
  • Freeze or unfreeze wallets. 
  • Transaction history.
  • View wallet balance.

Management of payments through Fill up and empty your CBDC wallet with money from a commercial bank, money P2P, payments arrangement through account ID or QR code, payment requests from third party, online payments, payment requests & programmatic/API payments via saved links.

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Advanced functions include payment schedules, notifications display, payment failure, payment receipts, freeze or unfreeze, arranging conditional payments & funding ring-fencing for budgeting.

Allowance for innovation to showcase alternative functionalities.

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