President of the Central Bank of England says that the institution is working on creating a digital currency.
According to Bloomberg, the Bank of England (BOE) is considering creating a government-backed digital currency. This was disclosed by Andrew Bailey, the bank’s president, at an online event, where he said the project is being reviewed and that the central bank is still evaluating its options.
It appears that the BOE is still in its early stages, so it is not clear whether the Central Bank has initiated any serious preparations for the creation of this digital currency.
The idea is still in its first phase, but it has proved to be increasingly valuable to BOE, so we can expect to hear the testing and regulatory frameworks implemented before the end of the year.
“We are analyzing the question: if we create a Bank of England digital currency, we will continue to analyze it, as it has huge implications for the nature of payments and for society.” – Andrew Bailey.
There is hope that digital currencies will prosper in England
In a statement, the bank’s president, Bailey, assured that the digital currency could come to fruition in a few years. As explained earlier, this is just the stage of consideration and, for the national currency to take place, it is crucial that the qualities inherent in digital currencies do not collide or obstruct most of the financial laws already implemented in the country.
“I think that in a few years we will be moving towards some type of digital currency.” – Bailey.
England’s digital currency may be nothing like Bitcoin
“Some type of digital currency” may also imply that the underlying structure of that digital currency may not be the same as other digital currencies like Bitcoin. The circulating offer, the Blockchain of choice and many other fundamental structures can be customized to suit the country’s general economy.
Bailey is also aware of how important cryptocurrencies are and the importance of their adoption for the country. However, with the global pandemic triggering day-to-day activities, the president hopes that when the assessments become more serious, the pandemic will have been subdued.
“The issue of digital currency is something huge, I hope, because it means that Covid will be over.” Bailey.
Is the Bank of England trying to rival the Pound?
It is very possible that the BOE is trying to rival other digital currencies, specifically Libra. Last year, the bank made it clear that Facebook’s global dominance already implies that Libra will be “systematically important” if implemented. Regulating Libra, as the BOE said, also means that other companies in the Libra ecosystem will be accepted.
The Bank of England concluded by saying that the Pound will face difficult supervision and so far this has been the case. At the end of the day, one of these coins may have to give way to the other. But previous events show that the country’s digital currency is more likely to survive in England.