Thread by @Dagnum_PI

$QNT is trending and for good reason! At the recent Financial Times Digital Assets Summit, the #BankOfEngland's director for central bank digital currency, Tom Mutton, and @quant_network's CEO @gverdian shared their views on a #DigitalPound. Here's a summary of the event. 👇

The panel session, titled "Central Banking in the Age of Decentralisation", was moderated by Joy Macknight from The Banker. The discussion revolved around the UK's central bank's objectives and progress with a digital currency.

Tom Mutton clarified that the Bank sees a digital pound as the equivalent of cash today. Gilbert Verdian, CEO of Quant, shared his views that CBDCs are a natural evolution of money and will unlock a wealth of benefits for consumers and businesses.

Verdian suggested that the best way to answer questions around CBDCs is to practically test them with domestic participants from commercial banks, financial institutions, and fintechs. Mutton agreed and outlined the experiments the Bank of England has been running.

The Bank of England has been working on projects Meridian and Rosalind with the help of the Bank of International Settlements. These projects focus on real-time gross settlement in the context of real estate transactions and use cases for retail CBDCs.

Mutton emphasized that offline payments are an important element of their experiments and that the Bank is also running ‘tech sprints’ to encourage public and private sector collaboration.

The panel also discussed the role of the private sector in CBDC innovation. Mutton pointed out that the central bank will not control how CBDCs are used, presenting an opportunity for banks, payments firms, and fintech companies to differentiate themselves.

The panel then turned to personal data privacy concerns. Verdian believes that CBDCs are a chance for the industry to overcome legacy issues and tackle fraud and financial crime more efficiently. He expects consumers to have better protection from fraud through a CBDC.

Verdian also explained that a digital pound will have rigorous data protection in place and personally identifiable data will never be shared with the issuing central bank.

Mutton echoed Verdian's views on privacy, stating: “A digital pound will only work if people have trust and confidence in it. And that will only happen if they feel their personal data is protected. A digital pound will have the very highest standards of privacy.”

The panel also discussed CBDC interoperability. Verdian was clear that he doesn't see crypto interoperating with fiat, or tokenised money. Mutton agreed, stating that a key objective of the digital pound was uniformity of money.

The key to CBDC interoperability, in Verdian's view, is the use of private permissioned chains and clear standards, akin to inter-bank networks used by industry for payments and settlement.

it's essential that CBDCs are able to flow seamlessly between existing and new institutions and co-exist with other forms of digital money – both domestically and cross-border.

This demands standards, a robust shared infrastructure, and expertise in interoperability and secure smart contracts.

The discussions at the summit have certainly sparked a lot of interest in #QNT. It's clear that the future of digital currencies is here, and it's exciting to see @quant_network at the forefront of these developments. #DigitalPound #CBDC

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