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

Sam Bankman-Fried might see his 25-year sentence halved

Sam Bankman-Fried, the founder of the failed cryptocurrency exchange FTX, was sentenced to 25 years in federal prison by a Manhattan court on Thursday. This comes after he was convicted of defrauding customers and investors, with Judge Lewis Kaplan highlighting the potential future risks posed by Bankman-Fried.

Technical Analysis

EURJPY Technical Analysis Report 28 March, 2024

EURJPY currency pair under the bearish pressure after the pair reversed down from the major resistance level 164.25, which also stopped the sharp weekly uptrend at the end of last year,

Digital Assets

BlockDAG’s Presale Hits $9.9M, MultiversX & MINA Price Predictions Show Green

Read about BlockDAG’s promising $10 prediction and insights on MultiversX Price Prediction as MINA’s potential unfolds.

Digital Assets

Rockstar Co-Founder and All-star Line Up Join Advisory Board to Take Metacade into Post Beta Orbit

Metacade, the revolutionary Web3 gaming platform, prepares to streak out of beta with a slew of ground-breaking initiatives that will redefine the way blockchain games are developed.

Retail FX

Prop firm The Funded Trader shuts down, claims relaunch in April

Prop trading firm The Funded Trader has ceased all operations, with claims for a relaunch in the near future.

Digital Assets

Ethereum-Based Tokenized Real Estate Platform USP Launches On Republic

How This Californian Startup Is Revolutionizing Real Estate Investment through Ethereum-Based Tokenization.

Digital Assets

Sui Spikes in Weekly DEX Volume, Joins Top 10 of All Blockchains

March DEX volume on Sui stands at over $2.88B – up more than 49% from February – with decentralized exchange Cetus and wholesale liquidity layer DeepBook leading.

Digital Assets

Prisma Finance suffers $10 million crypto exploit, attack ongoing

Liquid staking protocol Prisma Finance fell victim to a security exploit on March 28, resulting in nearly $10 million in Prisma mkUSD and wrapped stETH being stolen by hackers.

Digital Assets

Masa and LayerZero: Bridging Blockchains for Data Sovereignty

Masa Network is poised to revolutionize the personal data landscape with its upcoming launch as a cross-chain platform, making it accessible on a variety of blockchains right from the start.

<