Bank of England enlists help for study of CBDC

Karthik Subramanian

The Bank of England (BOE) has enlisted the help of 2 study groups which will provide inputs for the bank as far as the launch of CDBCs is concerned.

The 2 study groups are the Engagement Forum and the Technology Forum and the members of the group belong to a cross-section of people who have worked in banks, payment service companies as well as crypto-related businesses as well and they would be expected to provide inputs and guidance to the BOE on the preparedness that is needed for the launch of CBDCs. By enlisting both the Engagement Forum, which helps with strategy and policy and Technology Forum, which helps with the technical design and implementation, the BOE has made its intention of launching CBDCs very clear.

Of course, after all the designs and testing, it may still choose to not go ahead with the CBDC as it would look towards what other countries and the central banks are doing before making a decision. The launch of the CBDC is likely to require a coordinated effort from the central banks of many countries as if the CBDC is launched only by a few countries and not by the others, then it could cause some confusion in the financial ecosystem which would not be welcomed by anyone. That is why many of the central banks are keeping their cards close to the chest and not revealing any plans of testing or launch of the digital currency.

Other countries, like Nigeria, have gone ahead with the launch of a digital version of their fiat currency and though they seem to have some well-laid plans on how to roll out these digital currencies and how they are to be acquired and used by their citizens, they do not seem to yet define on how these currencies would interact with the fiat currencies of other countries which is where the challenge comes and which is where the need to convert these digital versions to their fiat versions would come in. If this is going to be the case, then the users may not be interested too much in the CBDCs as the frequent conversion of these into fiat and the charges for these conversions would kill the ecosystem. All these considerations would be at the back of the mind of the BOE as it continues engaging with the community.

Read this next

Digital Assets

TRON approves Wintermute to mint, burn USDD stablecoin

TRON Reserve DAO has welcomed crypto market-making giant Wintermute as the ninth member and whitelisted institution to mint Tron network’s stablecoin, Decentralized USD (USDD).

Metaverse Gaming NFT

Nas Academy and Invisible College introduce innovative model for Web3 education

Singapore-based online learning platform, Nas Academy is joining forces with Invisible College to teach people everything they need to know about the Web3.

Digital Assets

Top exec at BitMEX pled guilty US Bank Act violations, pays $150K fine

BitMEX’s head of business development, Gregory Dwyer pled guilty to violating the US Bank Secrecy Act (BSA) and allowing customers to use the platform to circumvent the federal anti-money laundering rules.

Retail FX

CySEC slaps €150,000 fine on FXBFI, operator of 101investing brand

The Cyprus Securities and Exchange Commission (CySEC) today announced that it has reached a settlement with FXBFI Broker Financial Invest Ltd, trading as 101investing, ordering the firm to pay €150,000 for violating the Investment Services and Activities and Regulated Markets Law.

Retail FX

X Open Hub expands multi-asset offering with new cryptocurrencies and indices

X Open Hub, a multi-asset liquidity provider, announced today that it has extended its offering with inclusion of 30 new cryptocurrencies and two emerging market indices.

Retail FX

Interactive Brokers now offers 24/7 access to crypto trading

Interactive Brokers Group, Inc. (NASDAQ: IBKR) has widened access to cryptocurrency trading for its clients. Specifically, the discount broker extended trading hours for its cryptocurrency products to be traded 24/7, including on the weekends.

Inside View

Natural Language Generation for Multi-Language Social Media Strategies 

Natural Language Generation (NLG) is a crucial growth area in the digital landscape, with the unique potential to be used across multiple industries.

Market News, Technology

The B2Core Android App is Now Available For Download

The first version of the B2Core Android app is available for download, and it has many beneficial features for users.

Digital Assets

XBO taps custodian Fireblocks ahead of crypto exchange’s launch has integrated with digital asset and crypto technology platform Fireblocks ahead of the crypto exchange’s upcoming launch.