Every CBDC is ten thousand times more efficient than Bitcoin, according to the fintech boss at the Bank of England

According to the Chief Fintech Officer of the Bank of England, the technology behind the central bank’s digital currencies (CBDCs) could be “ten thousand times more efficient than bitcoin per transaction”.

Tom Mutton said during his keynote at the Future of FinTech Conference on Thursday given An overview of the Bank of England’s current position on CBDCs. Much of Mutton’s speech reiterated the bank’s unequivocal interest in the development of CBDCs and its commitment to “keep cash available for as long as people want to use it”.

Mutton also responded to feedback from a survey the bank conducted on CBDCs in 2020. He explained the Bank of England’s stance on the concerns raised in the survey, including the need to protect privacy, build public trust and ensure access to technology.

He also deals with issues relating to energy and the environment:

“Bitcoin, with its poor performance and energy inefficiencies, is in no way an appropriate comparison for the type of technology we can use in a digital currency. the central bank “

Mutton urges environmentally conscious UK citizens not to “lose the core value of blockchain just because they don’t like Bitcoin”

Mother’s comments come as Bitcoin and other proof-of-work (PoW) cryptocurrencies are hotly debated over their environmental impact. As companies like Tesla change their stance on Bitcoin payments due to concerns about the carbon footprint of BTC mining, pressure is on central banks to consider the environmental impact of CBDCs – even banks like the Bank of England.

Mutton said the Bank of England’s CBDC could play a role in the country’s transition to a zero-carbon economy. In addition, Mutton stressed that energy efficiency is at the heart of the CBDC design and needs to be equipped with data and analytics technologies that allow the central bank to optimize the financial system to save as much energy as possible.

Annie

According to Coindesk

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