Head of UK central bank affirms cash’s status amidst growing popularity of Britcoin
Bank of England (BOE) governor Andrew Bailey reassured the public that cash will continue to be supplied as long as there is demand, amid concerns about the potential introduction of the UK’s central bank digital currency, Britcoin.
Bailey made these comments at the Group of Thirty’s 39th Annual International Banking Seminar, where he stated that the evidence shows people still want to use cash and the BOE will meet that demand.
Last year, Sarah Breeden from the Bank of England also emphasized the importance of maintaining cash availability as long as it is required, noting that both cash and digital money should remain options for consumers.
The debate over the benefits and drawbacks of a CBDC has been ongoing for years, with supporters citing potential cost reduction and risk management benefits, while opponents are concerned about privacy issues and government surveillance of financial transactions.
The BOE has been working on a digital pound design since January, with Bailey expressing support for a wholesale CBDC for banks but cautioning against a retail CBDC launch. He believes that a wholesale CBDC could play a significant role in high-value payment settlements.
Bailey also mentioned that the BOE is developing a retail CBDC for innovation purposes, aiming to encourage commercial banks to modernize their digital payment systems and address inefficiencies in areas like cross-border payments.
Overall, Bailey emphasized the need for better digital systems in payment processing and innovation to drive progress and efficiency in the financial sector.
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