Bank of England Reportedly Working on Its Central Bank Digital Currency

[G.Belaci]

Central banking institutions across the globe have been accelerating their developments for central bank-backed digital currencies (CBDCs). Over the last month, we have already heard some big economies likes Canada, Japan, and China working on their own CBDCs.

The latest industry report suggests that Great Britain is also on its way to test the prospects of introducing a digital currency backed by its central bank - Bank of England. As per the report from Bloomberg, BoE governor Andrew Bailey said that in a few years “we will be heading toward some sort of digital currency”.

Speaking to the students during a webinar, Bailey was quoted saying: “We are looking at the question of, should we create a Bank of England digital currency. We’ll go on looking at it, as it does have huge implications on the nature of payments and society”.

BoE previous governor Mark Carney was quite positive and optimistic about digital currency developments and always insisted other central banks to think progressively about it. Carney also said that a major shift in the global monetary policies can also see central banks further expand their interest in CBDCs.

Although the BoE currently issues electronic money, it is available only for banks and certain financial institutions. The central bank also added that the CBDC will be denominated in Pound Sterling, just like the bank notes. So a 10-pound CBDC will be same as a 10-pound note.

As per the Bank of England, “A Central Bank Digital Currency would make electronic money, issued by the Bank of England, available to all households and businesses. This would allow everyone to make electronic payments in central bank money”.

The central bank further added: “CBDC is sometimes thought of as equivalent to a digital banknote, although in some respects it may have as much in common with a bank deposit. Any CBDC would be introduced alongside – rather than replacing – cash and bank deposits.”

The bank has however admitted to it that there are currently some challenges and they would need to manage it carefully. Hence it is doing some active research in this space and attracting expertise from around the globe.

Furthermore, BoE’s Financial Policy Committee has announced that the existing regulatory framework needs to be tweaked to accommodate such new innovations in the payments sector.

Speaking on it governor Bailey said: “If the UK decides to develop a CBDC, it could provide the British pound with some advantage over major rival currencies like the US dollar and the euro”.

Source: https://www.worldcoinindex.com/news/bank-of-england-reportedly-working-on-its-central-bank-digital-currency

[tinakoya]

I think there is an improvement with cryptocurrency adoption hence the government is starting to see the benefit of it. Few countries are already working on their own digital currencies. If England joins the gang, it will only prove that crypto space adoption is increasing but let's just hope they won't take the freedom away

[Noverteno]

It has long been reported that more than 80 percent of all states are either considering the introduction of their digitized national currencies, or are already starting to create them. After all, the advantages of such stable coins of the central banks of states are obvious. Therefore, in the future, almost all states will have their own digital currencies (CBDC). So far, this process has dragged on. But innovations in the financial sector always happen slowly, because finance does not like haste.

[Fenix]

This thread with said news was written in July 2020. The year 2022 is already underway, but so far we practically do not see state-owned CBDCs, including the government of England. Now there is again talk that Europe and the US are going to issue their own digitized central bank currencies, but in practice this process is very slow. Of course, new directions in finance require careful study, but all the same, such a long delay surprises me. At the same time, all states note the significant advantages of CBDC compared to their current non-cash payments.

[dlwhdtn]

It's either delayed or it's not going to happen

[Google+]

central banks are starting to look at cryptocurrencies because indeed they must be able to develop and expand their performance with the development of time that has begun to enter the digital era so that banks start thinking about how to develop into the digital world. because if that is the case it will make the bank a loss and lose its customers.

[Astra]

I think that now many states are taking practical steps to issue their CBDC, that is, their digitized currencies. There is not a single state that would not recognize the revolutionary nature of blockchain technology and the opportunities that have arisen in connection with this for their non-cash payments. Therefore, the mass release of CBDC will be soon. They will significantly increase the efficiency of non-cash currencies of states.

[gurunanakji777]

In the coming year, many countries will develop their own CBDCs but till now I have not heard of any country that developed CBDC. I feel when CBDC will launch traders will shift their money from stable cryptocurrencies to CBDC. In my opinion after launch, CBDC crypto adoption will also increase in the respective countries.

[NancyDeep]

I believe it has a long long way to go

[doc]

central banks are starting to look at cryptocurrencies because indeed they must be able to develop and expand their performance with the development of time that has begun to enter the digital era so that banks start thinking about how to develop into the digital world. because if that is the case it will make the bank a loss and lose its customers.

Yeah, We know crypto is so popular now, I think central must allow and adopt digital technology.
It's good news for crypto enthusiasm.
Because I believe everything will be crypto.

[Noverteno]

I believe it has a long long way to go

Yes, this process is long, but inevitable. Almost all states highly appreciated the useful innovations and advantages of blockchain technology in all areas of human activity, including the financial sector. They recognized that digital money is faster, cheaper and more efficient than their non-cash transactions. Therefore, it is not surprising that many states are now working on creating their own digital currencies of central banks. But this path is completely new, and therefore long.

[Alcor]

A few years ago, information appeared that more than 80 percent of states are creating or trying to create their own digitized central bank currencies. But so far we see a very weak result in this direction. It seems that states are not in a hurry, some have taken a wait and see approach to look at the practical results of other countries, and some are slowly moving towards their creation, since this is a completely new approach to financial assets that does not need to be rushed. But over time, almost all states will have their own CBDC.