Bank of England Considering a Central Bank Digital Currency, Governor Says

The U.K.'s central bank is discussing the possibility of launching a digital currency, perhaps in several years.

Jul 14, 2020 at 9:00 a.m. UTC
Updated Sep 14, 2021 at 9:30 a.m. UTC

The U.K.'s central bank is discussing the possibility of launching a digital currency, according to its chief.

  • Speaking during an online event, Bank of England Governor Andrew Bailey told a group of U.K. students on Monday the bank is debating such a move, reported Bloomberg Tuesday.
  • Bailey said ongoing investigations would look at a central bank digital currency (CBDC), which would have implications across "payments and society."
  • Calling it a "very big issue," he anticipated a CBDC could be a real possibility in several years, once the coronavirus has passed.
  • Bailey's comments come at a time when more and more central banks globally are working at different levels on the idea of implementing a CBDC, either as a national digital currency for retail or for wholesale clearing and settlement between banks.
  • Sweden's Riksbank, the world's oldest central bank, recently looked into the viability of CBDCs and arrived at mixed results for the purpose of central banking, citing the substantial change and cost involved in the shift to digital.
  • The Federal Reserve of Philidelphia also determined that CBDCs might one day replace the role of commercial banks, but with the added risk of potentially harming money markets.
  • China, most notably, has already largely developed its digital yuan, which is in trials ahead of a likely live launch.
The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
After Armstrong Tweet, India's Crypto Policy Body Says No Contempt of Court Challenge vs. RBI

The Coinbase CEO last month suggested the RBI's "shadow ban" of crypto exchanges violated a Supreme Court ruling.

The Coinbase CEO last month suggested the RBI's "shadow ban" of crypto exchanges violated a Supreme Court ruling.

CoinDesk - Unknown
2
CoinDesk - Unknown
Portuguese Congress Rejects Two Bills Seeking to Tax Crypto

The proposals were submitted by two leftist parties. The government, which also seeks to apply taxes, hasn’t submitted a proposal so far.

The proposals were submitted by two leftist parties. The government, which also seeks to apply taxes, hasn’t submitted a proposal so far.

CoinDesk - Unknown
3
CoinDesk - Unknown
First Mover Asia: Regulatory Attention on Terra Could Change South Korean Trading Environment; Bitcoin Goes Sideways

The founders of two prominent crypto-related organizations said tightened restrictions could make it difficult for foreign tokens to list on Korean exchanges, discouraging projects from trying.

The founders of two prominent crypto-related organizations said tightened restrictions could make it difficult for foreign tokens to list on Korean exchanges, discouraging projects from trying.

CoinDesk - Unknown
4
CoinDesk - Unknown
A16z Doubles Down on Crypto Investments Despite Market Downturn, and NFL Launches Play-to-Earn NFT Game

The most valuable crypto stories for Wednesday, May 25, 2022.

The most valuable crypto stories for Wednesday, May 25, 2022.

CoinDesk - Unknown