Copy link
Increase text size
Decrease text size
Link copied

Central banks should consider digital currencies, Bank of England exec says

Image by Matt Brown from Flickr

Tue, 25 Feb 2020, 10:16 am UTC

The Bank of England (BoE) chief cashier Sarah John encourages central banks to consider digital currencies saying that it is “crucial” before tech giants dominate.

John, who is responsible for issuing banknotes at the bank, said that central banks should consider digital currencies as an option. Central banks have been forced to take action following the collapse of Bitcoin and with Facebook’s plan to launch its own cryptocurrency called Libra.

“We need to think as an institution about how to position ourselves to make sure society still has a broad range of payments that it can use with confidence,” John told Daily Telegraph.

“It is absolutely right that central banks think about whether a public sector or private sector would be best to provide a digital currency going forward.”

For John, it is important to strike the right balance between the public and private sectors. She urged the banks to position themselves in the center to ensure monetary and financial stability.

Meanwhile, the Financial Stability Board warned the authorities to speed up its pace in developing regulations for the emerging asset class. Fran Boait, executive director of Positive Money, warned that digital currencies released by the private sector such as Facebook’s Libra are “unaccountable,” “uncontrollable” and “with no oversight.”

“Technology is moving on very fast so central banks are very alert to the fact that they could risk handing over complete control of our management of money,” she said.

BoE was only one of the six institutions that co-founded a working group with Bank of International Settlement (BIS). The other members were Sweden, Canada, Switzerland, the U.K., and Japan.

The Bank of Japan told the Japan Times that they had several meetings with the Finance Ministry and Financial Services Agency (FSA) to discuss potential economic effects of digital currencies.

“We are advancing research and study from the technical and legal perspectives so that we will be able to move in an appropriate way when there is a growing need,” said BOJ Governor Haruhiko Kuroda.

Meanwhile, the Swedish central bank has started testing e-krona to examine the potential of central bank digital currency. The country has been moving forward towards becoming cashless since 2017.

TokenPost | [email protected]

<Copyright © TokenPost. All Rights Reserved. >

To leave a comment, please sign in.
More
  • Bitcoin (BTC) $11,728.20 (+4.58%)
  • Ethereum (ETH) $400.94 (+2.67%)
  • XRP (XRP) $0.224600 (+0.84%)
  • Bitcoin Cash (BCH) $294.10 (+1.90%)
  • Bitcoin SV (BSV) $234.05 (+3.86%)
  • Bitcoin (BTC) $11,728.20 (+4.58%)
Feb 21, 2020 (Friday)
12:01
Paxos launches blockchain-based securities settlement solution with Credit Suisse and Instinet
12:00
Brazil to launch new payment system in response to cryptocurrencies
11:59
Digital currency exchange Coinbase Pro lists Kyber Network token
11:57
Norwegian Air to soon start accepting crypto payments
10:21
Swedish central bank begins CBDC pilot with Accenture
09:51
Italian soccer team Juventus launches ethereum-based digital collectibles with Sorare
Feb 20, 2020 (Thursday)
14:16
Telecom companies complete cross-carrier mobile payments using blockchain
11:53
National Stock Exchange of Australia to develop DLT-based digital securities trading platform
11:00
South Korean ICO project discontinued, to return $7.5M to token holders
10:36
Samsung maintains crypto support in soon-to-launch Galaxy S20
09:41
BIS appoints Innovation Hub heads to lead Singapore and Switzerland
09:15
Coinbase becomes first crypto company to receive Visa principal membership
08:59
Dubai Economy and six banks launch KYC Blockchain Consortium
08:26
Crypto Technicals: ETH/USD under downside pressure after 'Bearish Engulfing' pattern
07:12
Tim Draper buys $1M worth of Aragon Tokens to create digital courts for DAOs
06:13
Renewable energy firm Acciona commits to take CBI’s blockchain-based carbon credits trading platform global
05:02
Crypto Technicals: BTC/USD trades below 21-EMA, break below 4H 200 MA (9386) to trigger further downside
04:56
Crypto exchange Coinfloor to launch a simplified bitcoin buying service
04:35
Indonesia’s customs department joins IBM- Maersk blockchain shipping platform “TradeLens”
Feb 19, 2020 (Wednesday)
12:46
Crypto custodian BitGo acquires digital securities startup Harbor
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.
PUBLISHsoft