Digital Assets: The U.K. Makes Exploratory Moves Towards CBDC
The Bank of England and HM Treasury will set up a task force to explore a central bank digital currency (CBDC).
The Bank of England and HM Treasury today announced the joint creation of a Central Bank Digital Currency (CBDC) Taskforce to coordinate the exploration of a potential UK CBDC. However, in a statement, the Bank said no final decision has been made on whether to launch a CBDC in the U.K., and that the Bank and the Government would “engage widely with stakeholders on the benefits, risks, and practicalities of doing so.”
The CBDC would be a new form of digital money issued by the Bank to be used by households and businesses. It would complement cash and bank deposits rather than replacing them.
The Bank announced the creation of four bodies in respect of the CBDC:
The roles of the task force in respect of a potential CBDC would be:
- Evaluate objectives, use cases, opportunities, and risks
- Evaluate design features
- Make the overall case to support a CBDC
- Keep an eye on international CBDC developments
Bank of England: CBDC unit
A new division of the Bank, the CBDC unit will coordinate the internal and external functions relating to the potential CBDC.
CBDC Engagement Forum
This forum will engage senior stakeholders and gather strategic input on all non-technology aspects of CBDC.
It will help the Bank and HM Treasury understand the practical challenges of designing, implementing and operating a CBDC.
CBDC Technology Forum
This forum will engage stakeholders and gather input on all technology aspects of CBDC.
It will help the Bank of England understand the technological challenges of designing, implementing, and operating a CBDC.
Chancellor Rishi Sunak
Speaking at a financial industry conference, the chancellor said the CBDC task force was being set up as part of a range of measures designed to boost the City following Britain’s departure from the EU.
Related Story: Bank of England Mulling CBDC
Image Credit: Flickr
Latest Alternative Investment News
Artificial Intelligence: A Molecule For Alzheimer’s Created By Exscientia’s AI Enters Clinical Trials
Oxford, UK-based Exscientia uses AI to design and create drug candidate molecules satisfying complex therapeutic requirements with revolutionary efficiency. Joint research by Exscientia with Sumitomo Dainippon Pharma Co., Ltd. (TYO:…
Vinted, a European startup that runs a marketplace for used clothing and home goods, announced its raise of $303 million at a valuation of $4.5 billion, post-money. That valuation is…
On Wednesday, Germany’s Federal Financial Supervisory Authority (BaFin) ordered challenger bank N26 to implement appropriate internal controls and safeguards and comply with general due diligence requirements to prevent money laundering…
The traditional [60:40] portfolio may no longer work over the long term. Sandi Bragar, managing director at Aspiriant, a wealth management firm based in Los Angeles with $14 billion in…