follow us on twitter . like us on facebook . follow us on instagram . subscribe to our youtube channel . announcements on telegram channel . ask urgent question ONLY . Subscribe to our reddit . Altcoins Talks Shop Shop


This is an Ad. Advertised sites are not endorsement by our Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction. Advertise Here

Author Topic: BoE policymaker says digital currencies could be part of ‘new monetary order’  (Read 1524 times)

Offline Cordillerabit

  • Legendary
  • *
  • *
  • *
  • Activity: 2948
  • points:
    16277
  • Karma: 104
  • Proud to be here
  • Trade Count: (0)
  • Referrals: 34
  • Last Active: October 30, 2024, 01:47:39 AM
    • View Profile

  • Total Badges: 27
    Badges: (View All)
    Sixth year Anniversary Fifth year Anniversary Fourth year Anniversary

The Bank of England, or BoE, is broadening its assessment of digital currencies, including evaluating how these assets could form the basis of a “new monetary order.”

Andy Haldane, the bank’s chief economist and sitting member of the Monetary Policy Committee, gave a speech on Wednesday at the TheCityUK 10th Anniversary Conference.

The 19-page transcript, titled “Seizing the Opportunities from Digital Finance,” delves into various topics related to digital currencies and their impact on financial stability and monetary policy.

The “traditional model of banking would be disrupted” by a widely used digital currency, Haldane said, adding that more attention needs to be given “to the potential longer-term benefits of such a structural shift.”

One such benefit is the emergence of so-called narrow banking, which would partially segregate banks’ “safe” payments-based activities from their riskier credit business.

Haldane said:

“In principle, separating safe payments and risky lending activities could lead to a closer alignment of risk and duration on the balance sheets of those institutions offering these services.”
On the monetary policy side, the central banker believes a digital currency could mitigate or possibly even negate the prevalence of negative interest rates. Haldane says zero-bound or negative rates “arise from a technological constraint on the ability to pay or receive interest on physical cash.” He added:

“In principle, a widely-used digital currency could mitigate, if not eliminate, that technological constraint by enabling interest rates to be levied on retail monetary assets.
Negative interest rates are an unconventional policy tool pushed by central banks to encourage financial institutions to lend money rather than hoard it in reserve. In a negative-rate environment, financial institutions pay to park their excess cash with the central bank. The European Central Bank, Bank of Japan and Bank of Switzerland all went down this route following the 2008 financial crisis.

The BoE is also exploring the various use cases of a central bank digital currency, or CBDC, but has not made any decision on the matter, according to fintech director Tom Mutton.

Central banks around the world are weighing the possibility of a CBDC, with some monetary authorities taking a more proactive approach. China, for example, recently concluded its largest pilot of the digital yuan, distributing online wallets to 50,000 people.

The United States Federal Reserve, meanwhile, has released a series of research reports exploring the potential utility of a CBDC. One of the key takeaways of a recently published literature review was the need to identify the “intrinsic features of CBDC.”

Source: https://cointelegraph.com/news/boe-policymaker-says-digital-currencies-could-be-part-of-new-monetary-order
Xmusic Chorus
Donations BTC: bc1qpfwrj00ey5zwnxp589s5qmulh5hscau2q5mayg
FB Page"|Subscribe my youtube channel "Xmusic chorus"

Altcoins Talks - Cryptocurrency Forum


This is an Ad. Advertised sites are not endorsement by our Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction. Advertise Here


 

ETH & ERC20 Tokens Donations: 0x2143F7146F0AadC0F9d85ea98F23273Da0e002Ab
BNB & BEP20 Tokens Donations: 0xcbDAB774B5659cB905d4db5487F9e2057b96147F
BTC Donations: bc1qjf99wr3dz9jn9fr43q28x0r50zeyxewcq8swng
BTC Tips for Moderators: 1Pz1S3d4Aiq7QE4m3MmuoUPEvKaAYbZRoG
Powered by SMFPacks Social Login Mod