The Bank of England will now see the chances of how Britain can fit itself in a bitcoin-style digital currency as part of a global gang of central banks that have come together to test the possible drawbacks of the supporting on electronic money and currency. Bank officials of Bank of England will meet with the Bank of Japan, the European Central Bank (ECB), the Sveriges Riksbank, the Bank of Canada, the Swiss National Bank and the Bank for International Settlements (BIS) to accommodate the research and experiences and the financial techniques to see the potential of Bitcoin for a central bank digital currency (CBDC).
The BoE deputy governor Sir Jon Cunliffe will share and co-chair the group with Benoît Cœuré, a former ECB board member and head of the BIS, the primary innovation hub. This move arrives amidst the emergence of private-sector digital currencies, such as Bitcoin and also Libra, due to which it s difficult to be launch this year. The BoE was amidst the several central banks to warn that Facebook’s currency would need to be controlled which will lead countless supporters to end their connection with the digital money.
The idea of a central bank digital currency has been increasing rapidly worldwide to aid in developing the payment systems and cross-border transactions and to minimize the chances of theft of the value of Cryptocurrency and the criminal activities related to that of crypto money.
Image Source: cryptocoin.news
The Bank of England said the new group of operations would look at the CBDC use cases; economic, financial, and functional and technical architecture choices, including cross-border vulnerability to cybercrimes related to Cryptocurrency and its value in the darknet market and the dispersion of knowledge on rising technologies. They will also do the work closely together in order to attain the joint goals with other global forums and groups, such as the Financial Stability Board and the committee on payments and market infrastructures (CPMI), the chairman of which is Suncliffe.
Just last month, Sweden’s central bank said it would sign a deal with the consultancy firm Accenture to create a pilot base which can help in facilitating for a digital currency, known as the e-krona, which can tell Bank of England to decide if they would make the Bitcoin, the most famous Cryptocurrency their CBDT. The Riksbank has been discovering the idea of a Bank of England about its role in the eyes of the economists, finance experts, and other bank finance personnel top decode upon Bitcoin if it would be of any useful purpose. The Bank of England will have its own digital currency for some time, especially given the rapid decline in the use of cash in Sweden.
The European Central Bank has also been looking into the potential benefits of CBDC since last year. Fran Boait who is the executive director of Positive Money, has said that the policymakers of the nation had been slowing down to realize how much enthusiasm there was for digital money and watching the necessary developments and pros and cons of Cryptocurrency in slow motion to understand why is it essential for the whole economy. They have been asleep when the wheel was over the future of the money system of the business worlds, which is being decided by a small number of banks, payment companies, and now tech giants of the society’s business models.
Image Source: www.cryptonewsz.com
The rapid decline of cash and the threat of private digital currencies like Facebook’s Libra have done for the society at large as a much needed wake up call, but central bankers like a Bank of England have a lot of catching up to do in their boardrooms.
Central banks of significant nations should accelerate the plans for a central bank digital currency, which would both make sure that people have the decision of a safe and secure public banking option and stop the commercial banking system has been wholly surrendered to unaccountable private concerns. This new group must serve as a powerful medium for doing so.
Source: The Guardian
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