Bank of England is considering its own CBDC

Ever since Facebook’s announcement of Libra, followed by the People’s Bank of China’s revelation of digital yuan, CBDCs (Central Bank Digital Currencies) have become a very hot topic around the world. Numerous central banks have already started researching cryptos, while some are even developing their own.

The EU central bank is also weighing its options, but so is the Bank of England, according to recent reports.

Bank of England’s governor confirmed it

The confirmation that England’s central bank is considering launching its own digital currency came directly from its governor, Andrew Bailey.

Bailey discussed the matter yesterday, as reported by Bloomberg. In a discussion with his students during yesterday’s webinar, he said that the bank is considering the CBDC’s potential relevance.

From what is known, the bank is not yet ready to start the coin’s development. However, it is looking into the possibility, and it will continue to do so for the time being.

Bailey said that a CBDC would have ‘huge implications on the nature of payments and society.’ According to his own assessment, the bank is likely to be heading towards some sort of digital currency within a few years’ time.

This confirmation comes only a few years after the bank’s director of notes and chief cashier, Sarah John, stated that it is crucial to research cryptocurrencies. This comment came up during a conversation regarding private entities’ competition in cryptocurrency creation.

Jones also said that central banks need to consider whether or not the private sector is the best provider of digital currencies. With the lack of regulatory clarity, understanding of cryptos, and a lot of uncertainty regarding this technology, central banks’ hesitance to get into crypto is understandable. However, the fact that they recognize their potential for the future is likely a positive sign for the crypto industry.