The Bank of England answered more than 70 questions from candidates hoping to win the $244,000 contract.

Companies that had bid for the $244,000 contract to develop a central bank digital currency (CBDC) proof-of-concept (PoC) contract for the Bank of England (BOE) have raised questions about the project. In response, the central bank published its answers to more than 70 questions.

On December 9, the BOE opened applications inviting vendors to submit applications. Until 25.12. around twenty companies applied and submitted their questions. The BOE then published the competing vendors’ questions and provided their answers, which were intended to provide insight into the project.

According to the BOE, it wants to create a back-end server for a ledger, a mobile wallet application and a merchant site. The bank clarified that it has not yet committed to developing a sample wallet and will only use the PoC to further its knowledge. BO wrote:

“We are using this PoC to increase our knowledge and understanding of how CBDC products could potentially interact with each other.”
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Initially, 28 applications were submitted, but eight sellers did not go further after the interrogation phase. Applications were completed by nine small and medium enterprises and eleven large enterprises. According to the BOE, the contract will be awarded to the successful candidate on January 31.

Related: The ‘Godfather of Crypto’ Wants to Build a Privacy-Focused CBDC: Here’s How

On November 23, BOE officials Andrew Bailey and Sir Jon Cunliffe answered questions posed by lawmakers during a live-streamed event. On digital currencies, officials seemed to see CBDCs as revolutionizing the future of money. Sir Cunliffe said he expects a revolution in the functionality of money, “driven by technology”.

Meanwhile, an industry expert recently sat down with Cointelegraph to discuss how crypto can be good for CBDCs and vice versa. Itai Avneri, deputy CEO of crypto platform INX, said that CBDCs and regulated crypto have the potential to complement each other.

Source: CoinTelegraph