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Bank of England & Treasury announce taskforce to explore UK Central Bank Digital Currency

The Bank of England and HM Treasury have announced the creation of a taskforce to explore the establishment of a mainstream Central Bank Digital Currency (CBDC)

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Published 20 April 2021

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The Bank of England and HM Treasury have announced the creation of a Central Bank Digital Currency (CBDC) Taskforce, tasked with the exploring the establishment of a UK CBDC. A CBDC would be a new form of digital money issued by the Bank of England and made available for use by both households and businesses. The CBDC would operate alongside cash and bank deposits, rather than replacing them.

This is an interesting new development as crypto goes increasingly mainstream. This signposts the Government’s intention to develop the UK as a significant independent financial services market post Brexit, along the lines of Switzerland.

There are many questions outstanding, Will this replace BTC? Will it be asset-backed and if so by the Bank of England’s gold depositary? We have to ask also whether such a currency would be linked to GBP and whether it will be adopted broadly both in the UK and internationally?

If it attains lift-off this could be an exciting opportunity for the UK to shape rather than follow the global crypto agenda.

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Shorter Reads

Bank of England & Treasury announce taskforce to explore UK Central Bank Digital Currency

The Bank of England and HM Treasury have announced the creation of a taskforce to explore the establishment of a mainstream Central Bank Digital Currency (CBDC)

Published 20 April 2021

Associated sectors / services

Authors

The Bank of England and HM Treasury have announced the creation of a Central Bank Digital Currency (CBDC) Taskforce, tasked with the exploring the establishment of a UK CBDC. A CBDC would be a new form of digital money issued by the Bank of England and made available for use by both households and businesses. The CBDC would operate alongside cash and bank deposits, rather than replacing them.

This is an interesting new development as crypto goes increasingly mainstream. This signposts the Government’s intention to develop the UK as a significant independent financial services market post Brexit, along the lines of Switzerland.

There are many questions outstanding, Will this replace BTC? Will it be asset-backed and if so by the Bank of England’s gold depositary? We have to ask also whether such a currency would be linked to GBP and whether it will be adopted broadly both in the UK and internationally?

If it attains lift-off this could be an exciting opportunity for the UK to shape rather than follow the global crypto agenda.

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