The newly formed alliance is creating a Green Paper exploring multiple use cases across the digital currency landscape that could arise from the creation of a new digital currencies infrastructure for financial markets. The consortium will publish its recommendations and use cases in a green paper, on the 4th of February 2022. The consortium is led by fintech experts from The Payments Association, Boston Consulting Group, and paywith.glass.
According to the press release, currently, financial processes ranging from retail payments to international trade and capital markets infrastructure have inefficiencies that can be solved through digital technologies, such as artificial intelligence, distributed ledger and smart contracts. Although the proposed ‘Central Bank Digital Currencies’ (CBDCs) could solve these problems and many more, their full implementations may be a decade or more away for most countries, so the question becomes how to make the most of the UK’s financial infrastructure during the interim period between now and the implementation of fully digital currencies, the consortium relates.
The aim of the use cases would be to reduce the ‘friction’ in the financial world, giving financial institutions, merchants and ultimately consumers greater flexibility and control over their money. Following on from the publication of the Green Paper, a plot will commence which is led by paywith.glass who will use its interoperable iDC/EP platform to enable a bridge between the old payment rails and the new CBDC world.
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