Bank of England: are they willing to adapt CBDC?

Will the Bank of England leave the GBP bearish today?

In terms of technology innovation, the Bank of England expressed concerns  regarding the Central Bank Digital Currencies (CBDC) project in their country, during a conference on Thursday.

The Bank of England’s fintech director, Tom Mutton, presented a speech at The Future of FinTech Digital Conference. He started the speech by providing insights into the question of what the ‘new normal’ would look like and the impact of digital disruption on traditional business structures. He followed up with the development of the CBDC project, stating that the technology behind CBDC could be “tens of thousands of times more efficient per transaction” compared to Bitcoin.

The Central Bank Digital Currency (CBDC) is on the move right now, as many countries are still in the process of exploring it. China is the leading nation that is implementing its digital yuan across its major regions. As this project gains support and provides efficiency for future use, the Bank of England’s interest in the development of a CBDC is still uncertain.

Tom Mutton reiterated the priority of designing a CBDC with environment-friendly energy consumption, including data and analytics protocols, and the need to further optimize it in the future, if the idea gets rolling.

ABOUT THE AUTHOR See More
Sophia Cruz
Financial Writer - Asian & European Desks
Sophia is an experienced writer, reporter and newsdesk member, mostly on the financial sectors. For the past 5 years Sophia has covered a wide variety of topics such as the financial markets, economics, technology, fin-tech and trading. Sophia has been a part of the FX Leaders team since 2017 and works on producing valuable content and information for traders of all levels of experience.

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