The Bank of England sees CBDC as a revolution in the future of money

In an event Streaming In a live broadcast on Wednesday, Bank of England Governor Andrew Bailey and Deputy Governor for Financial Stability Sir Jon Cunliffe answered questions from legislators in the Economic Affairs Committee. When asked about the country’s innovative growth around digital currencies, Sir Cunliffe gave the following comments:

“It is difficult to predict how future innovators will obtain funds and actually use funds. But we are beginning to see the use of programmable currencies in the cryptocurrency world. I expect we will see a similar revolution in currency functions by technology.”

Sir Jon Cunliffe discusses CBDC | Source:

The Bank of England is currently exploring options for implementing a digital GBP CBDC for retail payments. A working group behind the CBDC is also investigating the use of digital pounds to distribute payroll, pensions, etc.

In supporting the initiative, Sir Cunliffe cited the rapid decline in the use of cash in the UK in recent years-the emergence of the COVID-19 pandemic hindered physical contact in transactions, which has greatly accelerated this trend. It is estimated that 30% of transactions in the country are now conducted through e-commerce.

When asked about the potential demand for digital pound CBDC, Sir Cunliffe said:

“We simulated a very cautious assumption that basically 20% [household and corporate transactional] Deposits based on the banking system can be transferred from the banking system to the central bank’s digital currency. “

Nonetheless, Sir Cunliffe admitted that the current state of encryption transactions may threaten the country’s financial stability. The market value of cryptocurrencies soared to 2.6 trillion U.S. dollars in a short period of time. It is estimated that 95% of digital assets have no bank accounts and 5% are made up of stable coins.On the other side of the Atlantic, the outlook for the United States is less optimistic, saying that regulated stablecoins Designed by the private sector Make CBDC redundant.