Bank of England to Consider Digital Currency in Key Meeting

The central bank of England (BoE) will consider the potential of national digital currency in a historic meeting of central banks scheduled for tomorrow.

August 18, 2020 | AtoZ Markets – According to local news reports, the central bank of England will consider a central bank-backed digital currency in the meeting with central banks. In a virtual roundtable at the Official Monetary and Financial Institutions Forum (OMFIF), the meeting will see the Bank of England joined by the Swiss National Bank, Magya Nemzeti Bank, and ING Group, with blockchain platform Cypherium also in attendance.

Moreover, it will explore the potential applications, design, and benefits of central bank digital currencies (CBDCs). The Bank of England has increasingly been exploring all of these this year.

Governor confirms Bank of England to decide on considering a CBDC.

During a webinar event last month, Andrew Bailey, governor of the Bank of England, said:

“We are looking at the question of, should we create a Bank of England digital currency. We’ll go on looking at it, as it does have huge implications on the nature of payments and society,” 

Earlier this year, the bank also initiated a consultation exploring the potential launch of a state digital currency. Bank of England is not the only central bank that has spoken about potentially exploring digital currencies. 

Central banks across countries explore CBDCs

CBDCs are attracting growing support, with 80% of the world’s central banks reportedly investigating their potential. Several central banks have made noticeable progress in this area as they approach the final stages of issuing a CBDC. However, China will likely become the first major nation to issue a national digital currency. 

Read also: India Plans to Launch its Own Cryptocurrency

Dubbed as Digital Currency Electronic Payment (DCEP), the CBDC is currently being tested in many cities, including the capital city Beijing. Several economists and experts have claimed that the digital version of yuan could threaten the US dollar’s global dominance. As AtoZ Markets reported, the Bank for International Settlements had noted that the COVID-19 pandemic had amplified the need for central bank digital currencies. 

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