Bank of England ( BoE) Vice president john cunliffemade some comments, comparing the planned digital pound with the Apple Store.
According to the vice-president, the UK is not yet ready to issue a central bank digital currency (CBDC), as the Bank of England does not currently have enough expertise.
Cunliffe Highlights CBDC Function and Benefits
BoEvice president john cunliffeThe possibility of the Bank of England issuing a CBDC, said in a statement at the treasury elite committee session on February 28. is more than 50 percent, but noted that the regulator does not yet have the technical skills to issue a digital currency.
cunliffeAs the central bank plans to test a potential digital sterling with private sector partners, BoE’sin the next step CBDCHe said he expects him to acquire the necessary expertise in development.
Commenting on the topic cunliffe, “To get to the next level on CBDC, it would be to build a working prototype, test it in a simulated environment, then test it in a live environment, and then move on to implementation.”used the phrases.
cunliffedesign and construction of a potential digital pound of CBDC He stressed that it would vary greatly depending on his motivation. He said the BoE’s main motivation here will likely be to provide digital cash or the digital equivalent of BoE banknotes for general payment purposes. Also, Cunliffe “We didn’t want a system where there were two types of Bank of England money in circulation, paid and free.”said.
The vice president noted some potential that is not present in the current financial system. CBDC underlined its functions and benefits. Mentioning micropayments as an important potential use for the digital pound cunliffemade the following statements on the subject: “This way, it will be much easier for you to make very, very small payments. So if you want to read an article in a newspaper, you will not need to subscribe to the newspaper. You can pay small amounts to do this.”
While previously BoE Chairman Andrew Bailey was reported to have expressed doubts about the need for a CBDC in the short term, European finance ministers once again backed the retail version of the digital euro.
