Will England’s banks introduce new cryptocurrencies?
By KingsOfInvestment_eng on The Capital
The English bank is, in principle, a government adviser on monetary policy matters and, as far as possible, stabilizes the currency by setting appropriate interest rates. The customers of these banks also include commercial banks and central banks in other countries. An interesting fact is that the bank’s vaults contain gold reserves. The printing of banknotes takes place outside of London and is also supervised by this bank. At the very beginning, the bank was private and in 1946 it was nationalized by Clement Atlee’s government. It is considering the introduction of a digital currency which is to be secured by the central bank. The head of the UK Central Bank, Andrew Bailey, spoke about the potential implementation of this solution on Monday.
The Bank of England’s work on digital currency
- We are in the process of checking whether the digital currency can be created — said Andrew Bailey.
Six months ago he announced that he would lead the group of the most important central banks of the world and this was commented on by the Head of the BoE. They are to work together in research on digital currencies and the possibility of their implementation into the CBDC project. In fact, it is the central bank of digital currencies — the digital currencies of central banks. The European Central Bank, the Bank of Canada, the Sveriges Riksbank, and the Swiss National Bank are also members of the aforementioned group of banks. The Bank for International Settlements is also involved in this project, which further highlights the importance of this alliance.
- Digital currency can have implications for payment systems and society and this needs to be looked at in greater detail. Over the next few years, digital currencies are expected to start to develop even further.
Bailey makes it clear that the interruption of the work on the digital currency is not linked to the pandemic and the introduction of such digital currencies is definitely a job for the years to come.
- Digital currency is to be a very important issue, as it will assure us that this pandemic has basically already been laid to rest — says Bailey
2. Will CBDC be included in the official economic plan by the Japanese Government?
The Japanese economy — an economy that is incredibly highly developed and is the fourth largest national economy of the world in the nominal gross domestic product (GDP) (after the USA, the EU and China) and the fifth in terms of GDP in purchasing power parities (after China, the EU, the US, and India).
For a long time, the country has known deflation, and for several years there has been very low inflation, which is almost at zero.
The CBDC is to be included in the official economic plan by the Japanese Government. The message appeared 10 days after the Bank of Japan announced that it would start experimenting with the digital yen, in order to test its technical feasibility.
