Bank of England to press on with digital currency in case banks fall short, Bailey says
WASHINGTON - The Bank of England is reluctantly pressing on with work to create a form of digital money accessible to the general public, as commercial banks risk failing to keep up with less-regulated tech firms, Governor Andrew Bailey said on Saturday.
The BoE and Britain's finance ministry have said they will not make a final decision before 2025 at the earliest whether to go ahead with a state-backed digital pound or central bank digital currency , following a consultation which drew widespread concerns about privacy. While Britain's electronic payment infrastructure already provides fast transfers with no upfront costs for the public, future forms of digital currency could offer more options in areas such as automatic payments."But ... are they the only game in town? At the Bank of England we're continuing to prepare for a retail CBDC, because to be frank we are not yet seeing enough evidence that innovation will happen in the commercial banking system.
"To be particularly frank about this, if the rents that are being earned from the 'rails' act to inhibit innovation and act to inhibit competition, that is why ... we need a retail CBDC on the table," Bailey said.Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors.
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