Before a technological concept is introduced to the wider public, it is common for it to first undergo beta testing to iron out any deficiencies that may not be immediately obvious to the developers. An example of this in the UK is the latest instalment of the Football Manager franchise. Every year the maker Sports Interactive issues a beta version which players painstakingly test prior to the official release of the game. After feedback is analysed and acted upon, the aim then is for a smooth launch of the finished product.
Whilst on a much grander scale, beta testing will serve as an equally important aspect in how central banks plan to successfully implement their own variants of digital currency.
Out of all the six steps, number five is perhaps the most ambiguous. What it refers to is something Bank of England governor Mark Carney discussed in a speech at Mansion House in London last year. As part of the BOE’s objective to reform the UK’s RTGS payments system, they have been looking to utilise what is known as the ‘Legal Entity Identifier.’