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Bank of England Lags Behind on CBDC Tech: Threatening Future Financial System

Key Points:

Bank of England (BoE) Deputy Governor Jon Cunliffe shared that the regulator is not yet prepared to issue a central bank digital currency (CBDC).
BoE is planning to collaborate with private sector partners to test a potential digital pound.
BoE wants to ensure it has the necessary technical skills to develop a CBDC securely and effectively.

Bank of England (BoE) Deputy Governor Jon Cunliffe shared that the regulator is not yet prepared to issue a central bank digital currency (CBDC). Cunliffe cited the BoE’s lack of technical skills as the main barrier to CBDC development in the United Kingdom.

Despite this, Cunliffe revealed that there is a greater than 50% chance that the BoE would issue a CBDC in the future. He added that the central bank is working towards gaining the necessary expertise to move forward with CBDC development in the next phase.

To do this, the Bank of England is planning to collaborate with private sector partners to test a potential digital pound. The next phase will involve building a working prototype, testing it in a simulated environment, and eventually testing it in a live environment before implementation.

Cunliffe emphasized that the BoE wants to ensure it has the necessary technical skills to develop a CBDC securely and effectively. He noted that the central bank’s approach is cautious and deliberate, with a focus on ensuring the development of a CBDC meets regulatory requirements.

While the Bank of England is not yet prepared to issue a CBDC due to a lack of technical skills, it is actively working towards gaining the expertise required. The regulator is focused on developing a CBDC securely and effectively, with a cautious and deliberate approach that ensures regulatory compliance.

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Annie

Coincu News

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.