Bank of England hints there ‘could be role’ for CBDC

Two key execs at the Bank of England (BoE) have publicly spoken about the possibility of a state-run digital currency this week.

In a speech at the OMFIF Digital Money Institute in London, deputy governor for financial stability Jon Cunliffe said that the introduction of a central bank digital currency (CBDC) is likely.

“We may not be there yet,” said Cunliffe. “But it looks probable in the UK that if we want to retain public money capable of general use and available to citizens, the state will need to issue public digital money that can meet the needs of modern day life.”

The BoE’s governor Andrew Bailey also hinted at a future with a state-run digital currency.

"It may well be that we do end up with a digital currency,” Bailey said at a public event organised by the bank.

But the governor said that the cryptocurrency is “a few years off at the moment."

Bailey warned that while there could be a place for a CBDC, there are also a number of issues associated with cryptocurrencies.

The governor explained that while the use of cash is declining, a digital currency would have a big impact on the financial system and other areas.
"Security, that is an issue for us. Privacy, that's a big issue, a very big issue," he said at the event.

Bailey also said that Facebook’s plans to launch a cryptocurrency "set off a lot of alarm bells" about access to information.

In April, UK finance minister Rishi Sunak requested the bank and regulators to explore the case for issuing a CBDC.

    Share Story:

Recent Stories

New Business Frontiers
FStech’s Mark Evans discusses the future of financial services with Liu Jianning of Huawei, covering the limitations that current thinking can impose, how financial institutions can embrace technology to be both agile and resilient, and making space for the organisation to focus on the job of creating innovative business models and on delivering business value for their customers.

The Future of Intelligent Finance
FStech Group Editor Mark Evans sits down with Jason Cao, President of Global Financial Services Business Unit, Enterprise BG at Huawei ahead of its Intelligent Finance Summit which was held on 3rd and 4th of June in Shanghai. This Q&A delves into key trends in digital transformation of the financial services industry as well as a look at how data, robotic infrastructure, intelligent storage and innovative technologies are shaping the future for FSIs.

Cracking down on fraud
In this webinar a panel of expert speakers explored the ways in which high-volume PSPs and FinTechs are preventing fraud while providing a seamless customer experience.