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The Bank Of England’s Deputy Governor Thinks The U.K. Needs To Issue A Digital Currency

Another country seems to be taking notice of the digital ecosystem.

It remains to be seen what the rumored “Bit Pound” or “Brit Coin” will look like, or if it will ever actually become a reality. Perhaps the digital currency will even be built on an existing blockchain or utilize already existing tokens, coins, and digital assets.

Many have pointed out that this is an idea doomed to fail, and that government institutions really shouldn’t launch any sort of cryptocurrency as that defeats the purpose.

Still The B.O.E. is adamant. Jon Cunliffe the Deputy Governor for the Bank of England thinks that this new digital reality will likely pull in The B.O.E. citing less cash usage during the pandemic among other things.

This news comes at a time when other countries finance ministers and central planners have been eyeing crypto currencies and other digital financial systems with a very curious eye.

Could we be seeing the bit pound soon?

Will it be a success, or a flop as many say it will?

Only time will tell, but my money is always on the actual crypto market, and never with governments and the very institutions we all turn to crypto to get away from in the first place.

Coin Telegraph wrote:

About 70% of respondents to a recent Bank of England survey indicated they are using less cash than before the pandemic, typically turning to options such as contactless payments and internet transactions.

Whilst this shift away from public money in the form of cash towards private, commercial bank money continues to accelerate, Cunliffe predicted that newer technologies are likely to spark an equally significant change in the use and even concept of money, with potential implications for its resilience as a social convention.

Tokenization and distributed ledger technologies, particularly when deployed by non-bank, Big Tech actors, are likely to provide the public with more flexible, data-driven forms of money that offer new functionalities in the digital world, he noted.

With the advent of new phenomena such as stablecoins, programmable money, smart contracts and micro-payment channels, Cunfliffe said that central banks are already grappling with key questions about how to adapt existing regulatory frameworks that are currently designed for commercial bank money circulation.

Express UK had an earlier report explaining the issue:

CityUnited Project founder Prof Hodson, a former chief executive of London’s futures exchange, has made a total of 24 recommendations for reforming financial services.

He told “We have a golden but one-off opportunity to capitalise on three world-beating assets: our Fintech know-how, our global regulatory leadership, and our great, complex and diverse City.“However we need to work together closely, but quickly, towards specific objectives including a Digital Pound Sterling. 

“China will become a formidable competitor and there’s no stopping a digital renminbi with all its benefits and challenges.”

The renminbi is the official currency of China, of which the Yuan is the basic unit.

Prof Hodson said a digital pound would allow fractions of a currency to be spent and traced without costly overheads to help collect and distribute taxes in real time, and spawn more efficient, real-time supervision of markets.

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