Bank of England, HM Treasury create CBDC taskforce

Monday 19 April 2021 13:40 CET | News

The Bank of England and HM Treasury have announced the creation of a taskforce to explore central bank digital currencies (CBDC).

They emphasized that no decision has been made to proceed with a CBDC. A digital GBP would be a third form of money alongside bank accounts and physical cash and what is being investigated is a general CBDC available to businesses and consumers. In 2020 the bank published a research roadmap on the topic.

The stated aims include exploring motivations, risks, use cases, and design features and keeping abreast of international CBDC developments. While the Bank has already started to consult externally, a new CBDC Engagement Forum has been created. It will seek a diverse set of views including financial institutions, merchants, businesses, and consumers. At the same time, the taskforce is creating a CBDC Technology Forum.

Additionally, the central bank has created a CBDC unit headed by Deputy Governor for Financial Stability Jon Cunliffe, who also co-chairs the taskforce.

Meanwhile, the Bank of England also announced a new omnibus bank account, a special account at the central bank targeted at regulated payment systems. The new account is well-suited to Fnality, the blockchain-based payment system owned by 15 institutions.

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Keywords: CBDC, digital currency, blockchain, central bank
Categories: Banking & Fintech | Cryptocurrencies
Countries: United Kingdom
This article is part of category

Banking & Fintech