Bank

U.K. Finance, a prominent trade association, has successfully <a href="https://www.coindesk.com/business/2024/09/16/uk-finance-member-banks-see-benefits-during-experimental-phase-of-a-tokenization-cbdc-platform/?utm_medium=referral&amp;utm_source=rss&amp;utm_campaign=headlines">concluded</a> the experimental phase of a central bank digital currency (CBDC) and tokenization platform. In collaboration with 11 member banks, including notable names like Barclays, HSBC, and NatWest, as well as professional service firms, the initiative aims to create a payment network powered by tokenization and programmable digital currency. 
According to U.K. Finance, this new platform, referred to as the Regulated Liability Network (RLN), promises to deliver enhanced capabilities for payments and settlement, including programmability. 
<h2 id="span-style-font-weight-400-regulated-liability-network-span">Regulated Liability Network</h2> 
The RLN platform, which has been designed to modernize the financial market infrastructure, is expected to create major economic value while introducing new functions like programmable payments. This could revolutionize how institutions handle payments and transactions. 
Tokenization, the process of digitizing real-world assets such as securities, has been gaining momentum globally. U.K. Finance believes this could further streamline traditional banking practices and open new avenues for digital money management. 
The program demonstrated that tokenized commercial bank deposits and wholesale CBDCs could operate seamlessly on a multi-issuer tokenization platform. The initiative also simulated a wholesale CBDC, a digital currency issued by central banks for institutional use, not the general public. 
The platform’s design also incorporates an application program interface (API) layer, which enhances interoperability between different forms of digital money and existing financial systems. U.K. Finance concluded that the U.K.’s current legal and regulatory framework is flexible enough to support the further development of this innovative platform, though more regulatory engagement is required for full implementation. 
The <a href="https://thecoinrise.com/bank-of-england-to-experiment-on-wholesale-cbdcs/">Bank of England has also been exploring CBDCs</a> and distributed ledger technology (DLT), indicating a strong national focus on these innovations. 
<h2 id="span-style-font-weight-400-growing-demand-for-cbdc-span">Growing Demand for CBDC</h2> 
CBDCs have captured the attention of governments globally in recent years. A survey from June revealed that <a href="https://thecoinrise.com/cbdc-seeing-growing-interest-from-central-banks-bis-survey/">94% of nations are actively investigating</a> the development of digital versions of their national currencies. 
For example, the Banque de France (BDF) and the Hong Kong Monetary Authority (<a href="https://thecoinrise.com/hkma-and-banque-de-france-forge-partnership-for-cbdc-creation/">HKMA) signed a Memorandum of Understanding (MoU)</a> in June to collaborate on wholesale CBDCs and tokenization efforts. Meanwhile, <a href="https://thecoinrise.com/taiwan-central-bank-focuses-on-steady-progress-in-cbdc-development/">Taiwan is steadily advancing its CBDC development</a>, focusing on ensuring a stable rollout rather than rushing the process. 
The post <a href="https://thecoinrise.com/u-k-finance-completes-experimental-phase-of-tokenization-and-cbdc-platform/">U.K. Finance Completes Experimental Phase of Tokenization and CBDC Platform</a> appeared first on <a href="https://thecoinrise.com/">TheCoinrise.com</a>.

U.K. Finance Completes Experimental Phase of Tokenization and CBDC Platform

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