Andrew Bailey, the Governor of Bank of England on Monday, told that Bank is still talking about whether the institution should generate a central bank digital currency.
Andrew Bailey further added at the webinar event; he accepts that in the upcoming few years, the central bank digital currency would be a reality in England. Therefore, Andrew Bailey has not given a specific time frame that when the discussion about the Digital Currency is going to end.
In the recent statements from the Bank of England, came into view to the part of the Bank carry on with the public statements reasserting favour for the digital version of the sterling pound.
The Bank of England is before now part of the class of paramount central banks, which have to work jointly for the developing and upgrading their digital currencies.
The Bloomberg Report:
Andrew has stated that we are keenly observing and cross-examining that should we generate digital currency at the Bank of England. Plus, we are also observing that what will be its huge implications on the society and the nature of payments if we do the same.
Similarly, Andrew Bailey also warns that major development will only grow up if the Covid-19 pandemic is for a long time, then it will change everything and our priorities as well.
Konstantin Anissimov is the executive director at Cex.io, react to Bailey’s statements regarding Bank of England plans for Central Bank Digital Currency. He also said that such a Central Bank Digital Currency would have plenty of potentially positive results on the economy of the United Kingdom.
Additionally, for the stability through the generation of a more manifold and flexible payments environment, a Central Bank Digital Currency (CBDC) could be practice to create a more effective and reliable cross-border payment system. It will replace the existing system and network, which the Bank of England narrates as a slow, opaque and expensive”. Express by the Anissimov:
He further added that since 2006, the physical bank-notes have been in a declining phase in its usage. The Central Bank Digital Currency, have “the potential to decrease the share of private money that was issued in the economy”.
Previous to the pandemic of Covid-19, which have also has accelerated the increased call for them without using cash payments procedures. Many of the counties across the globe were working and are now thinking for the development of the Central Bank Digital Currency.
Moreover, several central banks entering the race to issue Central Bank Digital Currency, as they are facing a threat from stablecoins such as Libra that was issued privately.
Countries like Sweden and China are leading now, whereas the Kingdom and the United States are yet to be in the stage of making a decision.
In the last, we would say that for the present, an effective cross-border payments system would become more significant for the United Kingdom after the end of the Brexit transition period.
On January 1, 2021, Anissimov said, “this transition system is awaited to end, and also awaited to transform the payments outlook as well.”