The Bank of England has taken a step towards digital currencies and is creating a Taskforce to explore the possibility of establishing a central bank digital currency (CBDC).
Today the central bank of England and HM Treasury publicly declared that a new Taskforce will be created to evaluate the ecosystem for a CBDC.
“The Bank of England and HM Treasury have today announced the joint creation of a Central Bank Digital Currency (CBDC) Taskforce to coordinate the exploration of a potential UK CBDC.”Bank of England statement on Central Bank Digital Currency
This is not the first time a digital pound is being considered by the Bank of England. In fact, a paper titled “Bank of England releases Central Bank Digital Currency research roadmap” was released last year. The study talked about risks, possibilities, and much more.
A new CBDC Engagement Forum and Technology Forum have been established. They will be in charge of considering every part’s points of view: businesses, financial institutions, consumers, and the technology that will be needed 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 Taskforce will be co-chaired by Deputy Governor for Financial Stability at the Bank of England, Jon Cunliffe, and HM Treasury’s Director General of Financial Services, Katharine Braddick. As appropriate other UK authorities will be involved in the Taskforce.”Bank of England statement on Central Bank Digital Currency
Even though this is concrete progress, the country is still relatively far from implementing its central bank digital currency.
“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
Countries all over the world have been exploring the subject. We can mention those located in Asia, for they are certainly forward when it comes to CBDCs. Banks in Cambodia, China, or Thailand are already testing them.