The governor of the Bank of England, Andrew Bailey has said the bank is exploring the possibility of issuing a central bank digital currency (CBDC).
Bloomberg reports that Andrew Bailey made this known during a webinar event with students.
During the webinar Andrew Bailey said:
We are looking at the question of, should we create a Bank of England digital currency,” Bailey said Monday in a webinar event with students. We’ll go on looking at it, as it does have huge implications on the nature of payments and society. I think in a few years time, we will be heading toward some sort of digital currency.
The Bank of England joins a bandgawon of Central Banks around the world interested in issuing a central bank digital currency with Covid19 impacting traditional methods of finance and payments.
The Bank of England chief cashier and director of notes Sarah John earlier this year stressed the need for central banks to research digital currencies in order to avoid losing the space completed to private entities that are also interested in issuing digital currencies.
Sarah Jones said:
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.
The issuing of a central bank digital currency could be huge for England bearing in mind they are not part of the Eurozone and could provide some advantages for the British Pound over major currencies like the U.S. Dollar and Euro.