Central bank digital currencies remain of keen interest to various entities. Barclays intends to organize a CBDC hackathon later in 2022. The event should highlight the potential of this emerging technology to large-scale banks, although it remains unclear if institutions will leverage the concept.
The Barclays CBDC Hackathon
The opinions on whether central bank digital currencies make sense remain somewhat divided. Cash usage continues to decline in favor of mobile and digital solutions. As such, it makes sense to digitize cash, too, primarily with the help of central banks. However, creating a central bank digital currency is not as simple as it may seem, as there are many factors to consider.
Barclays wants to host a CBDC hackathon in September 2022. The two-day event will feature coding challenges simulating CBDCs and commercial bank money. As more central banks and regulators pay attention to CBDC technology, such a hackathon can prove rather useful. In addition, many industry experts feel the transition to central bank digital currencies is inevitable, although nothing is set in stone.
Barclays’ Lee Braine adds:
“Hackathons are a fantastic way for the industry to explore new ideas and emerging technologies, allowing participants to learn, collaborate, network and even compete. This event explores one of the hottest topics in banking – a new form of money known as central bank digital currency which has the potential to be a digital pound for the UK. We will provide a series of use case challenges that will involve participants connecting to a Barclays simulation of both a central bank and commercial banks, and a panel of industry judges will assess the solutions and prizes will be awarded.”
It is the first large-scale CBDC hackathon to take place in the Western world. Although the outcome remains uncertain, it can spark a growing interest in central bank digital currencies. The big question is whether these currencies will see broader uptake and enter the mainstream. For now, that seems unlikely, although planning for the future is never a bad idea.