The Ministry of Finance under Queen Je and the Bank of England have revealed that they will establish a Central Bank Digital Currency (CBDC) working group. According to the announcement, the purpose of the group is to explore potential UK CBDC.
British entities convene a CBDC task force to study digital currencies issued by the central bank
Central Bank Digital Currency (CBDC) has popped up in many countries/regions, and most of them are still in the exploratory stage. Compared with countries such as the United States, Canada and the United Kingdom, a few countries such as Venezuela, Sweden and China are far ahead in the competition. On Monday, the UK Treasury Department and the Bank of England (BoE) announced plans to join the CBDC competition.
The UK Treasury stated that the two UK entities have established a CBDC task force, which will be committed to “exploring potential UK CBDC.” The press release wanted the public to know that the bureaucracy and the Bank of England “have not yet made a decision on whether to introduce a CBDC in the UK.” However, the purpose of the working group is to address this idea strategically and “to promote close coordination among officials exploring the UK-based CBDC.”
The CBDC working group will be co-chaired by Jon Cunliffe, Deputy Governor of the Bank of England, and Katharine Braddick, Director-General of Financial Services at the Department of the Treasury. The announcement stated in detail: “Official members of the working group will be limited to relevant personnel from the Bank of England and the UK Ministry of Finance.” “Other British authorities will participate in the work of the working group on CBDC as appropriate and will be invited to participate in the meeting when relevant. The Bank of England and the UK Treasury will jointly assume the responsibilities of the secretariat.”
CBDC will “ensure the UK to become a world leader in fintech innovation”
Jorge Lesmes, Global Head of Blockchain Banking at Everis, commented on Bitcoin.com News that the latest announcements from the Ministry of Finance and the Bank of England are positive. Lesmus explained: “The UK is a world leader in fintech, and the implementation of the Central Bank Digital Currency (CBDC) will help ensure this title.” He said: “As the Covid-19 pandemic accelerates us The process of transition from actual actions has increased customer demand for convenient, technology-driven financial services and digital payment methods. The introduction of CBDC will be the key to meeting these ever-changing consumer needs.” added.
The Everis executive continued:
However, before retail banks benefit from the use of digital currencies, the first stage of implementing commercial banks may be for inter-bank settlement. Of course, the introduction of CBDC is not without risks. In order for this partnership to succeed, the newly formed working group must study how the British government will work with the Bank of England to ensure that all potential risks have been considered and the correct regulations are in place to eliminate threats and maintain value.
The work plan of the UK Treasury and the Bank of England aims to evaluate design features to achieve specific goals. The Ministry of Finance insists that the CBDC will require “rigorous, coherent and comprehensive evaluation.” The two entities will also participate in interactions with CBDC stakeholders. In addition, these organizations will monitor the development of CBDC to ensure that the UK is “always at the forefront of global innovation”.
What do you think of the efforts of the UK Treasury Department and the Bank of England to introduce a CBDC task force for the UK? Let us know your thoughts on this topic in the comments section below.
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