Crypto
Bank of England Tests Stablecoin, Digital Pound for Cross-Border Trade
The Bank of England (BOE) is exploring how stablecoins and a digital pound can work together to modernize cross-border finance. The BOE has been experimenting with a central bank digital currency (CBDC) since 2024.
As part of its Digital Pound Lab, the BOE will test whether public stablecoin infrastructure and central bank money can coexist in a single payment flow for trade finance. This experiment is aimed at improving trade finance, which would particularly benefit small businesses.
The project involves NOBO Finance, Dun & Bradstreet, and Polygon Labs as participants. They plan to combine wallet transaction data, open-finance information, and business intelligence to create a reusable credit assessment for small businesses.