Bank Of England Is Open To A Central Bank Digital Currency

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The Bank of England is open to the concept of central bank digital currency (CBDC) according to its governor, Mark Carney.

Despite the declared openness, the digital currency adoption will not happen soon. The central bank governor expressed that cryptocurrencies do not currently constitute money.

Carney previously criticised cryptocurrency, saying that “It has pretty much failed thus far on… the traditional aspects of money. It is not a store of value because it is all over the map. Nobody uses it as a medium of exchange.”

Bank of England issued a working paper containing multiple scenarios of CBDC associated financial risks and instability issues. According to the report, there are no reasons to think that CBDC adoption will negatively impact private credit or market liquidity.

Riksbank Anniversary conference

During the 350th Riksbank’s anniversary, Carney explained that central bank’s “past, present, and future” have and do depend on keeping public trust in the financial system.

Other countries are also looking into creating their own CBDC. Switzerland has its eyes on e-franc, while Estonia is working on the estcoin.

The Riksbank is also considering an e-krona in a reaction to declining use of banknotes and coins in Sweden.

 

Do you think that national cryptocurrencies are the way to go? Share your thoughts in the comments below!

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