At the opening of the Bank for International Settlements in London, Andrew Bailey expressed his optimism about central bank digital currencies (CBDCs).

Andrew Bailey – Governor of the Bank of England

Andrew Bailey, Governor of the Bank of England (BoE), said he was glad that central banks are starting to embrace the idea of ​​CBDCs.

“If that happens, it will be one of the most fundamental innovations in central bank history. It will lead us into a new era. “

The British central bank openly says it is working on its own digital currency. Finally, the digital currency can replace cash and credit as means of payment. While the UK has yet to make a decision on whether to introduce CBDCs in the UK, the country is currently weighing the pros and cons with stakeholders.

Bailey continued shown “The prospect of stablecoins as a means of payment and the new CBDC proposals create a number of problems that central banks, governments and society at large must carefully examine and address.”

BoE no must be the only central bank learning about CBDC

While the UK and several other countries are still looking for CBDCs to modernize their financial systems, there are countries that have done significant experimentation.

China is a clear front runner in the race for nationwide CBDC clearance. The digital yuan has been in development since 2014 but has yet to be launched on a large scale. Instead, they are currently testing them in certain regions of China.

Recently, Shanghai announced it would be dropping more than $ 3 million worth of digital yuan through a lottery system. That same week, Beijing distributed 200,000 red packets with 200 digital yuan in each envelope as part of the current test plan.

Another country that is also making great strides towards the CBDC is the Bahamas. According to the report from PwC, the Caribbean country, is a world leader in developing CBDC for retail. The Bahamian Sand Dollar (a state-sponsored virtual currency) wins because it’s in operation. Almost 25% of the pilot programs in the Bahamas have been implemented.

PwC ranks Cambodia second in terms of retail CBDC development and China third. The National Bank of Cambodia began developing its currency called Bakong in 2018 and is considered the only other project that “exists” outside of the Bahamas.

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