Bank of England governor, Andrew Bailey, teases on the possibility of the U.K. introducing a central bank digital currency (CBDC) to keep up with the digital finance developments.
In a student’s webinar event, Andrew Bailey, the Governor of the Bank of England, stated the bank is looking into introducing a digital currency. The bank has started the review process of launching its own CBDC joining other states such as China, Russia, Japan, and the U.S in this respect. Speaking on the plans, Bailey said,
“We are looking at the question of, should we create a Bank of England digital currency. We’ll go on looking at it, as it does have huge implications on the nature of payments and society.”
On the plans of actually releasing the CBDC, Bailey said,
“I think in a few years’ time, we will be heading toward some sort of digital currency.”
A future of digital payments?
The former BOE Governor, Mark Carney, spoke on introducing instantaneous payments to cope with the speeds of financial transactions hailing Libra’s payment system as a solution. However, Andrew recently stated his skepticism on the growth of Bitcoin as a currency reporting the currency has not “caught on much” asking investors with BTC to be prepared to lose all their money.
Despite the skepticism on digital currencies, Andrew believes the government will soon take on digital currencies seriously, albeit some waiting due to the current global pandemic.
“The digital currency issue will be a very big issue,” Bailey said. “I hope it is because that means COVID-19 will be behind us.”