Bank Of England Is ‘Open To The Idea’ Of A Central Bank Digital Currency

After the talk from the governor of Bank of Spain, it seems like Bank of England is following when it comes to potential plans involving cryptocurrencies. However, the stance of this bank is quite optimistic and in line with digital currencies.

According to the Governor of the Bank of England Mark Carney, there is a possibility of a central bank digital currency (CBDC) in the future. His talk at the Riksbank Anniversary conference (a Swedish bank) proved the open-mindedness of implementing a CBDC in the future.

However, Carney also stressed that any such adoption would not happen soon. The UK central bank governor said that cryptocurrencies currently do not constitute money and have pretty much failed thus far on. As he said in February 2018:

“It [cryptocurrency] has pretty much failed thus far on… the traditional aspects of money. It is not a store of value because it is all over the map. Nobody uses it as a medium of exchange.”

What’s most interesting is the fact that earlier this month, the Bank of England issued a working paper which laid out various scenarios of possible financial risks and instability issues of using a CBDC. The report also found that the scenarios described put no reason to believe that adopting a CBDC would negatively impact the private credit of total liquidity provision to the economy.

The 350th anniversary of Riksbank on May 25th was the event where Carney stressed that the “past, present and future” of central banks have and do depend on maintaining the public trust in the financial system. Ever since Brexit, the Bank of England overhauled its financial system which made it more resilient to shocks such as the ones following the events like Brexit.