Bank of England, HM Treasury establish new taskforce to explore digital currency
The Bank of England and HM Treasury have jointly created a taskforce to explore a potential central bank digital currency (CBDC) in the U.K.
Announcing the news on Monday, the two government authorities said they have not yet decided whether to introduce a CBDC in the U.K. but will explore its use cases and risks.
They will also evaluate the design features of a CBDC and monitor international CBDC developments to ensure the U.K. “remains at the forefront of global innovation.”
If issued, a CBDC would co-exist with cash and banknotes rather than replacing them, said the authorities.
The taskforce will be co-chaired by Jon Cunliffe, Bank of England’s deputy governor for financial stability, and Katharine Braddick, HM Treasury’s director general of financial services. The central bank and the finance ministry will involve other U.K. authorities as appropriate, they said.
The Bank of England has also created a new CBDC unit, a CBDC engagement forum, and a CBDC technology forum.
The CBDC unit will lead the central bank’s internal and external coordination around potential digital currency. The engagement forum would focus on non-technical aspects of a CBDC, such as uses cases, roles of public and private sectors in a CBDC system, and data and privacy implications. The technology forum, on the other hand, will focus on understanding the technological challenges of designing, implementing, and operating a CBDC.
This is a breaking news story and will be updated…
© 2021 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Go to Source
Author: Yogita Khatri
