announce The Bank of England and HM Treasury said they would continue to research and explore a digital currency or a stable national currency.
Consultation will start in 2022:
HMT and the Bank of England will launch an advisory in 2022 to assess the state of the British Central Bank (CBDC) digital currencies.
Although the two entities have not yet made a final decision, this consultation will decide whether the development process can begin in the future.
This development phase will include the creation of technical specifications and design tests, and this phase will last for several years.
If the trials are successful, this will lead to the launch of a CBDC between 2025 and 2030.
The Bank of England wrote that central bank digital currency would be a new form of digital money, and that it would be used by individuals and businesses “to meet their daily payment needs, and would not replace cash and bank deposits but would work in tandem.
The CBDC will be issued by the Bank of England itself.
It is supposed to be linked to the value of sterling although this is not explicitly mentioned in the ad itself.
Earlier this year, the bank and HMT set up a joint task force to explore the possibility of a central bank digital currency, which brought it to the news today.
Other countries are also moving forward with CBDC discovery:
England is one of several countries exploring the possibilities of CBDC.
In particular, China has made significant progress with its central bank digital currencies, and has even added support for it at several ATMs this year.
Other countries considering or launching a CBDC include the United States, Nigeria, Canada, Ghana, and others.
Nearly 89 countries are currently exploring this technology, according to the Atlantic Council.
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