BoE says Britain is not lagging behind other central banks in digital currency plans | – #BoE #Britain #lagging #central #banks #digital #currency #plans
LONDON, Feb 28 (Reuters) – Bank of England Deputy Governor Jon Cunliffe said on Tuesday that Britain it is not behind other central banks in issuing a digital version of its currency for everyday payments.
Cunliffe has been pressured by MPs on the Treasury Select Committee to delay by several months a public consultation on the digital pound that was launched earlier this month.
“I don’t think we’re lagging behind other advanced economies,” Cunliffe said.
As cash depletion accelerates in some cases due to the COVID-19 pandemic, central banks around the world are exploring digital versions of their currencies to keep digital payments out to the private sector.
Financial sector officials also say the digital pound will help keep pace with developments in payments and keep London a competitive global financial centre.
This month, the BoE and the finance ministry said they were continuing to work on a possible digital pound that would enter circulation in the second half of this decade and be held in a “wallet” provided by banks, although no final decision has been made. has been done.
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Lawmakers said the consultation was expected last fall and asked if there were any disagreements.
Cunliffe, Bank and the finance ministry, saying there was no disagreement and that the delay was due to “flows” last fall.
The government’s failed budget Big Britain after lowering government bond prices Bank had to intervene in the markets in September.
“It’s more likely,” Cunliffe said when pressed by MPs on whether the digital pound would go ahead.
“It could have huge benefits for the economy and society,” Cunliffe said, adding that there are competition questions to be answered before anything goes ahead.
“It’s not something special that needs to be done here, it’s about opening up a new frontier to improve payments for people,” Cunliffe said.
Cunliffe said it remains to be seen how trends in technology, payments and the economy develop over the next two to three years and whether a digital pound is technically feasible.
“Can it be built, what concessions are there, and how much does it cost?”
Cunliffe said one of the challenges will be getting people to trust a regulated digital currency so they don’t confuse it with a “Wild West ecosystem” of cryptocurrency.
Reporting by Huw Jones, editing by Louise Heavens
Our standards: Thomson Reuters Trust Principles.
2023-02-28 21:05:11
Source – reuters
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