The Bank of England governor has questioned whether the UK needs a digital pound or CBDC, and has become the latest official in a major economy to question the benefits of central banks’ digital currencies.
Andrew Bailey says it’s important to embrace cutting-edge transaction methods, but he questioned whether this CBDC, known as “Britcoin,” is the answer.
“I’m sure the natural next step is to create a new form of money rather than putting digital technology into retail payments or bank accounts,” he said in his annual speech at a London Mansion House on Tuesday.
The Bank of England has been researching the benefits of the digital pound for several years, but has yet to make a specific decision on whether to proceed. Both Canada and Australia have abandoned plans for retail CBDC for the past 12 months.
Bailey also has been cautious about the rise of stubcoins, reflecting his European counterparts fearing that they will erode the sovereignty of local Fiat currency by boosting the dominance of the dollar.
He emphasized that it is important that the stabrecoin is proven safe, adding, “While stubcoin may have a role to play in the future, I don’t think they are a substitute for commercial bank money.”
A few days ago, Bailey also urged the banking giant to launch its own alternative to digital assets. USDC and Tether– They mean less capital, such as mortgage lending, as a result.
This is the governor’s most powerful signal that the Bank of England can move away from the digital pound, and that the UK could potentially invest in the UK in conflict with the EU, which continues to develop the digital euro.
However, despite his reservations about CBDC and Stablecoins, Bailey stressed that “there is an urgent need for innovation in the field of payments,” and it is important that existing infrastructures continue into the future.
Throughout the Atlantic, what the House Committee on Financial Services calls “Crypto Week” is not accurately planned.
House members were intended to participate in procedural measures that paved the way for them to vote for several fragments of key cryptography.
However, these votes failed to move on after 12 Republicans crossed the aisle and joined Democrats to oppose the measure.
US President Donald Trump later confirmed about the true society that he spoke to 11 of these GOP members.
