Bank of England announced need for its digital currency
2023.02.04 15:46
Bank of England announced need for its digital currency
By Ray Johnson
Budrigannews.com – According to a report from the British government that has not been made public, the Telegraph newspaper reported on Saturday that the Bank of England (BoE) and the finance ministry of Britain believe that the United Kingdom will likely require the creation of a central bank digital currency (CBDC) later this decade.
According to the joint report, BoE Governor Andrew Bailey and finance minister Jeremy Hunt said, “On the basis of our work to date, the Bank of England and HM Treasury judge that it is likely that a digital pound will be required in the future,” according to the Telegraph.
The report was quoted by the Telegraph as saying, “It is too early to commit to building the infrastructure for one, but we are convinced that further preparatory work is justified.”
The BoE didn’t say anything about the Telegraph article, but it said that a joint consultation on CBDC issues would be out soon.
According to a government source, the report will be released next week.
On Tuesday, the finance industry will receive an update on the BoE’s CBDC work from Deputy Governor Jon Cunliffe.
In 2021, when he was finance minister, Britain’s Prime Minister Rishi Sunak asked the BoE to investigate the case for a CBDC. In October, Britain’s Financial Services Minister Andrew Griffith stated that the country could not avoid the issue indefinitely.
A CBDC would make it possible for a wider range of businesses—and possibly even individuals—to directly hold electronic money in accounts with the BoE, potentially eliminating banks that currently have this privilege.
In June, the forum for central banks, the Bank of International Settlements, stated that CBDCs are required to modernize finance and prevent Big Tech from controlling money.
According to the Telegraph, the BoE’s proposals do not include allowing individuals to hold accounts directly with it.
The European Central Bank is developing a digital currency and is currently sketching out the overall design. It stated last month that it would accept individual-to-person payments but would not provide personal bank accounts.
China has carried out the most extensive CBDC cross-border trial to date.
