In a groundbreaking update, the Bank of England has confirmed that the UK’s existing point-of-sale (POS) terminals could be adapted to process digital pound payments, as part of its ongoing central bank digital currency (CBDC) exploration.
Transitioning from the research phase to the design stage this year, the Bank of England’s digital pound roadmap aims to ensure that any future CBDC is seamlessly integrated into everyday in-store transactions. The central bank’s recent feasibility study indicates that the current UK POS infrastructure could, in principle, support digital pound payments without necessitating new hardware investments.
The study’s findings reveal that:
- Online Payments: Existing POS terminals are technically capable of initiating digital pound transactions, ensuring a smooth transition for merchants and consumers.
- Offline Payments: While offline payment functionality is feasible with existing terminals, they would need modifications to deploy an offline payments application, enabling the storage of offline balances.
This development suggests that the UK is moving towards a practical, user-friendly digital currency, aiming to enhance payment efficiency while minimizing additional costs for merchants.
“The integration of the digital pound with current POS systems is a significant step forward, making the transition to digital currency seamless and cost-effective for businesses and consumers alike,” commented a Bank of England spokesperson.
As the design phase progresses, the Bank of England is likely to collaborate closely with stakeholders to refine the digital pound’s functionality, ensuring it meets the needs of all market participants.
