Polygon joins BofE's Digital Pound Lab to test cross-border settlement

The Bank of England is moving closer to a 'Digital Pound,' and the latest tests involve near-instant international payments using blockchain technology. Polygon Labs has joined the Digital Pound Lab to experiment with cross-border settlements that happen in seconds rather than days. For retailers, this represents a potential shift in how you receive funds and manage international supply chains. Currently, cross-border transactions are bogged down by high fees and slow processing times. This initiative aims to use a Central Bank Digital Currency (CBDC) to bypass the traditional 'correspondent banking' system that causes these delays. While this is still in the testing phase, the implications for consumer financing are significant. Faster settlement could lead to lower merchant fees because there is less risk and fewer intermediaries involved. It also paves the way for new types of automated financing agreements that trigger payments instantly upon delivery or sale. If your business deals with international customers or overseas suppliers, this technology could eventually eliminate the 'waiting period' for your capital to clear. It bridges the gap between digital assets and traditional government-backed money, making the payment ecosystem more efficient for every operator involved.

Source: Finextra — Lending

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