At the second Bund Summit held on October 25, Bank of England Financial Technology Director Tom Mutton stated that although the central bank digital currency (CBDC) is the Bank of England’s “focus”, the central bank’s position in March of this year has not changed. .
Mutton said: “We have not yet decided whether to launch a retail CBDC.” “But we are exploring its pros and cons with interest.”
The Bank of England executive specifically stated that the Bank of England is studying the payment methods of Britons affected by the coronavirus crisis “to provide shoppers and merchants with safe, efficient and convenient payment methods”, and CBDC may achieve this. aims. He added that as far as the privacy of a retail CBDC is concerned, it is “for personal use only” and “must be’harmless’ to currency and financial stability.” Any digital currency issued by a bank must be able to Coexist and complement bank notes and commercial bank currencies.”
Mutton believes that the challenges faced by the central bank in issuing CBDC include promoting competition and innovation among other forms of currencies, ensuring that technology does not “determine policies” and cooperating with other institutions to find solutions.
Mutton said: “We can’t’act alone.’ Given the wide range of problems that CBDC has shown, the central bank needs to work with a wide range of stakeholders.
Mutton’s remarks are in agreement with other leaders of the Bank of England. In July, the Governor of the Bank of England Andrew Bailey stated that the Bank of England is studying the possibility of issuing digital currencies backed by legal tender. However, Bailey is also critical of cryptocurrencies such as Bitcoin (BTC), saying they lack “intrinsic value.”
