Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Chancellor Sunak says no decision yet on whether to introduce a CBDC

Cryptocurrency NewsJul 27, 2021 10:43
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters

By Samuel Indyk

Investing.com – UK Chancellor Rishi Sunak has responded to an article in the Daily Mail, denying that any central bank digital currency (CBDC) could directly replace cash.

“We want to make sure the UK is at the cutting edge of innovation and technology in financial services, so it’s right that we explore the potential role of CBDCs to understand the wide-ranging opportunities and challenges they could bring,” Sunak said in a post on LinkedIn.

“A CBDC would, potentially, be a new form of digital money issued by the Bank of England and for use by households and businesses.”

Britcoin

A Treasury taskforce to explore a UK CBDC, dubbed ‘Britcoin’ by some in the UK media, was launched in the Spring alongside the Bank of England.

“There are a number of important considerations relating to the introduction of a CBDC which the Government and the Bank of England will need to evaluate carefully,” Sunak added.

“We will need also to engage widely with stakeholders on the benefits, risks and practicalities. We have not yet made a decision on whether to introduce a CBDC in the UK.”

Sunak has also clarified that any introduction of a CBDC would not mean the end of cash.

“Any potential UK CBDC would exist as a complement to cash and bank deposits, and not a replacement,” Sunak explained.

Other countries

China appears to be the country with the most advanced CBDC, although no countries have widely rolled out digital currencies yet.

An official timetable for the full launch of China’s digital yuan has not been announced but trials have taken place in four different cities and around CNY 200 million of digital currency has been distributed as part of the pilot.

In Europe, Sweden is the furthest down the line with its e-Krona. The Riksbank began evaluating the need for a digital currency as far back as 2017. Last year, the Riksbank began to test its e-Krona pilot, together with Accenture (NYSE:ACN), to construct a possible technical platform for the e-Krona.

This year, Sweden will start work preparing for a possible procurement of an issuable e-Krona.

Benefits of CBDCs

Those who support the introduction of CBDCs say it would help in financial crises, allowing the Bank of England to pay people directly into their accounts if they introduced a stimulus programme, for example.

In theory, it could also lower banking costs for smaller firms and make it easier and cheaper to move money around the financial system.

Chancellor Sunak says no decision yet on whether to introduce a CBDC
 

Related Articles

EOS Falls 10.04% In Selloff
EOS Falls 10.04% In Selloff By Investing.com - Sep 19, 2021

Investing.com - EOS was trading at $4.8613 by 23:46 (22:46 GMT) on the Investing.com Index on Sunday, down 10.04% on the day. It was the largest one-day percentage loss since...

Bitcoin forms golden cross, upside to follow?
Bitcoin forms golden cross, upside to follow? By Investing.com - Sep 17, 2021 2

By Samuel Indyk Investing.com – A major technical indicator, known as a Golden Cross, has formed in Bitcoin. The pattern occurs when a short-term moving average crosses above a...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Gary Morgan
Gary Morgan Jul 27, 2021 12:34
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Beast money. The mark of the beast will be a tattoo of a fine gold bar with its fineness shown as. 999. Don't take the mark.
Peter Norris
Peter Norris Jul 27, 2021 12:34
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Make sense
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email