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Report: CBDCs Being Looked into By Bank of England

Report: CBDCs Being Looked into By Bank of England
  • It now seems that the Bank of England is looking into these pros and cons and how they would affect the sterling.
  • A report was recently released by the bank, just shy of 60 pages. 
  • The report looks into CBDCs and how they could be introduced to the current markets.

The pros and cons of digital currencies for central banks have been seriously spoken about over the past few months. It now seems that the Bank of England is looking into these pros and cons and how they would affect the sterling. The central bank for the UK has recognised that a digital pound could be destabilising for a current banking system. Nevertheless, cryptocurrency could also be able to utilise the latest in financial technologies and make transactions significantly easier and quicker for many customers.

A report was recently released by the bank, just shy of 60 pages. The report goes on to look into CBDCs and how they could be introduced to the current markets performing as both a store of value and being used in everyday transactions.

Titled “Central Bank Digital Currency March 2020: Opportunities, Challenges and Design”, the report goes into many discussions by the government as they explore their options when it comes to changing the traditional way of things as they go into the future of digitalisation.

Cryptocurrency is becoming a much more mainstream asset. Over the past two years, we have seen significant increases in its mainstream adoption.

There are many platforms based on the blockchain which offer cheaper and quicker transactions and they are becoming significantly more popular because of this. The Bank of England is currently only maintaining control of fiat currency and so was unable to get onto this new market, however, as Facebook announced the launch of its Libra stable coin last year, many have been forced to seriously consider CBDCs and how they will work in their country as it seems to be the future.

“We are in the middle of a revolution in payments. Banknotes — the Bank’s most accessible form of money — are being used less frequently to make payments. At the same time, fintech firms have begun to alter the market by offering new forms of money and new ways to pay with it. These developments create major new opportunities, present some new risks, and raise a number of profound questions for the Bank.”

It will be interesting to see how this situation plays out. For more news on this and other crypto updates, keep it with CryptoDaily!

 

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