The Bank of England's digital pound project has entered its second phase, which will test the collaborative payment of stablecoins and central bank currency

The Bank of England (BOE) has entered the second phase of the digital pound project, testing whether publicly issued stablecoins can operate in conjunction with central bank currency within a single payment process for trade finance.

BOE will collaborate with NOBO Finance, Dun & Bradstreet, and Polygon Labs in the digital pound laboratory to explore the establishment of reusable credit profiles for small businesses and to study the use of stablecoins in conjunction with potential digital pounds in invoice factoring. The related experiments do not involve real customers or funds and aim to provide a reference for BOE and the UK Treasury to assess the interoperability of different forms of digital currency.