The UK Treasury and the Bank of England have launched a CBDC taskforce that will coordinate and explore the central bank digital currencies in the UK as we can see more in our latest crypto news today.
The UK Treasury and the Bank of England have launched a CBDC taskforce to coordinate the exploration of CBDC while UK is still one of the few countries that consider launching its own CBDC like China and Japan.
Both entities launched a task force to coordinate the exploration of the central bank’s digital currencies as per a statement. The project will explore how the potential digital currency would work and what are the possible risks associated with it. The UK government and the BoE haven’t really made a decision yet on whether they want to introduce CBDCs but the joint project is still a huge step in this regard.
Bank od England
The CBDC taskforce will provide an assessment of the case for central bank digital currencies in the UK and it will also monitor how other countries across the world are developing their own digital currencies with one goal of keeping the UK at the very first line of the technological evolution. The CBDC taskforce will be led by the deputy governor for financial stability at the Bank of England Jon Cunliffe, as well as with the director-general of financial services as the HM Treasury, Katherine Braddick.
The bank released a discussion paperback in 2020 on the opportunities, challenges, and the design of central bank digital currencies. According to the paper, there were seven ways that the CBDCs could support the bank of England’s goals by maintaining financial stability as the one main focus for both entities. The methods included avoiding risks of new forms of private money like Bitcoin but also helping to support the cross-border payments solutions.
The UK is one of the few countries that are exploring central bank digital currencies. China, on the other hand, is already conducting advanced trials of its own Digital Currency and its Electronic Payment system while Japan’s central bank back in April launched its first phase of a feasibility study for the digital Yen. What’s even more interesting is that the European Central Bank’s president Christine Lagarde, stated recently that a decision on whether to release the digital euro will be taken later this year.