If you recognize an age by the requirements that drive them, ‘alternative’ would be the word of the times. Today is all about alternatives – choices to suit oneself, options to pick from. So, on the 2022nd revolution around the Sun, the world is chasing alternative money – for convenience, for security for smart transactions. Only weeks after China came out as the first major economy to introduce it’s Central Bank Digital Currency (CBDC), the Bank of England, yesterday, announced its joint venture with HM Treasury in setting up a Taskforce to rake the possibilities and measure up the potential of a CBDC.

Also Read: Top 10 Countries Experimenting With Central Bank Digital Currency

Defining the CBDC

In their publication, the BoE goes no further in defining the term than their predecessors in the field, “A CBDC would be a new form of digital money issued by the Bank of England and for use by households and businesses. It would exist alongside cash and bank deposits, rather than replacing them.”

As was with China, they too had claimed their CBDC, the Digital Yuan to act as a ”redundant” form of currency to coexist with the traditional formats of coins and banknotes. In other words – an alternative currency.

The Taskforce Duties

The formation of the Taskforce is aimed at charting a strategy that may be adopted by the UK authorities as they investigate the risks and opportunities in the CBDC. As per the terms of the press release, Taskforce will harmonize the cooperation of the relevant statutory bodies of the UK with regards to CBDC.

The responsibilities of the task force involve exploring the preliminary issues associated with the design, implementation, and operation of a CBDC in the United Kingdom. The Taskforce remains responsible for monitoring the developments with CBDC, globally and ensuring that the UK remains ahead of its times in terms of innovation.

The document states that the Taskforce is to be co-chaired by Deputy Governor for Financial Stability at the Bank of England, Jon Cunliffe, and HM Treasury’s Director General of Financial Services, Katharine Braddick.

Apart from setting up a Taskforce, the BoE also establishes separate engagement forums to focus on the technological and non-technology aspects of CBDC. The document also emphasizes the bank’s intention of establishing its own CBDC unit which will be headed by John Cunliffe, Deputy Governor for Financial Stability at the Bank of England.

Also Read: Fiscal Transfers and Cross-Border Payments With CBDC

As it Appears…

The objective behind the nations’ rush to launch their own CBDC arises from the need to brace their economies from the risks of new forms of private digital currencies. The U.K. financial services minister John Glen is reported to have identified stablecoin regulations to take precedence in the government’s measures in the cryptocurrency sector. As per Reuters’ reports the UK financial market focus inclines towards the distributed ledger technologies firm.

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