BoE skeptical of digital pound as eurozone backs work on digital euro |
LONDON, 16 january (Reuters) – Bank of England Governor Andrew Bailey on Monday questioned the need for a digital pound as euro zone finance ministers backed further preparations for a digital euro.
Britain is due to launch a public consultation in the coming weeks on what the legal attributes of the digital pound should be – if it decides to go ahead and launch one – which backers say will mean faster transactions.
Bailey Monday of parliament The Treasury has told the Select Committee that it is not sure whether a digital pound is needed at the moment.
Bank Britain updates the real-time general settlement system (RTGS), which holds the accounts of banks, building societies and other institutions with the BoE.
“I think wholesale digital central bank whether currency is needed is an open question, because we have wholesale with a major improvement central bank there is a cash settlement system,” Bailey said.
Bailey was also cautious about the digital pound for retail use such as making payments, adding that cash cancellation no plans to do so.
“Before we get caught up in the technology and the idea, we have to be very clear about what problem we’re trying to solve here,” he said.
He was not convinced that retail payment systems “need this kind of improvement right now.”
Meanwhile, on Monday, the euro zone finance ministers, currently Europe He said they support the ongoing preparatory work for a potential digital euro studied by the Central Bank.
The EU this year on how the digital euro will adapt to the bloc’s laws law should publish the project.
“The Eurogroup believes that the implementation of the digital euro, as well as its key features and design options political which should be discussed and accepted at the level political requires decisions”, the joint statement of the ministers says.
Digital euro cash should complete and substitute should not and “offline functionality” should be explored to serve wider uses and contribute to financial inclusion, the ministers said.
By Huw Jones report; Edited by David Evans
Our standards: Thomson Reuters Trust Principles.
2023-01-17 05:34:36
Source – reuters
Translation“24 HOURS”