Bank of England Speaks About the Future of CBDCs

Andrew Bailey, Governor of the Bank of England, and Sir Jon Cunliffe, Deputy Chairman for Financial Stability, answered MPs from the Economic Affairs Committee about the central bank digital currency (CBDC).

When asked about the growth of technological innovation movements in the UK around digital currencies, Sir Cunliffe said:

“It is quite difficult to predict how innovators will receive and use the money in the future, but we are starting to see programmable money being used in the crypto world.”

Emphasizing that digital assets can threaten financial stability, the Bank of England reported that rigorous research has been carried out on payments and enforcement procedures for the digital pound CBDC.

To a question about the strong interest and innovative development in the digital pound CBDC, Sir Cunliffe replied:

“We’ve modeled an assumption that needs to be treated very sensitively, and it’s basically based on the banking system. [bireysel ve kurumsal işlemler] 20% of deposits can exit the banking system and move to central bank digital currency.”

The Bank of England states that the use of cash globally has decreased with the effect of Covid -19, while emphasizing that 30% of the transactions in the country take place on online platforms accordingly. In parallel, the UK is positively evaluating digital assets as an option.

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