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Bank of England confirms the possibility of a CBDC launching

Sir Jon Cunliffe stated in a speech that the United Kingdom may issue a central bank digital currency in the future.
bank of england

Sir Jon Cunliffe stated in a speech that the United Kingdom may issue a central bank digital currency in the future.

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The deputy governor of the Bank of England declared on Thursday that this plan can become reality if public money will outlive private replacements. In fact, the launching of CBDC would help in the increasing skepticism of people towards the public currency.

Jon Cunliffe

“The knowledge that under stress depositors have the option to switch into state money may be important in preventing a more general loss of confidence in money.”

Sir Jon Cunliffe, the deputy governor of the Bank of England

According to the deputy governor, if citizens aren’t given another choice, they may turn to stablecoins. Their functionality and low transaction costs are becoming more attractive to people, and that would damage the status of public money.

“There is now the very real prospect of non-banks, including the large technology platforms or ‘big techs’, issuing new forms of digital money, such as ‘stablecoins’ for general payment purposes. These are likely to have greater functionality and lower transaction costs than the current commercial bank digital money offering and could quickly attract a large number of users.”

Sir Jon Cunliffe, the deputy governor of the Bank of England

The speech comes almost a month after the Bank of England declared the establishment of a Taskforce that would evaluate the ecosystem for a digital pound. The CBDC Engagement Forum and Technology Forum were created. They will be in charge of considering every part’s points of view: businesses, financial institutions, consumers, and the technology that will be required for the digital pound.

Deputy Governor for Financial Stability Jon Cunliffe will be directing a CBDC unit of the bank, and also co-managing the Taskforce.

“The Government and the Bank of England have not yet made a decision on whether to introduce a CBDC in the UK and will engage widely with stakeholders on the benefits, risks, and practicalities of doing so.”

Bank of England statement on Central Bank Digital Currency
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