He Bank of England will attend an important meeting tomorrow Discussion of Central Bank Digital Currencies (CBDC) and its possible infrastructure designs.
Organized by the World Central Bank’s think tank, the Official Forum of Monetary and Financial Institutions (OMFIF)On August 19th, the Bank of England’s most important fintech specialist will take part at the round table. Simon goalscorertogether with delegates from Swiss National Bank, ING Nederland and the Hungarian National Bank (Magyar Nemzeti Bank). The CEO of the blockchain company Cypherium, Heaven guo, will also participate in the discussion.
A central point of the meeting will be to examine how blockchain technology can benefit various CBDC models. This includes the use of smart contracts – for example in “programmable money” designs – and interoperable blockchain network models inside and outside national borders.
Guo said as long as CBDCs remain in their early stages of conception, “Now is the time to discuss the pros and cons of infrastructure ideas, particularly in terms of how these tools interact and work with one another.”.
Each central bank delegate – Simon Scorer from the Bank of England, Anko Szombati, Director of Digital Technology at Magyar Nemzeti Bank, Cees Van Wijk, IT specialist from the ING Blockchain team, and Thomas Moser, member of the Board of Directors of the National Bank Schweizerisch – present the results of the internal investigation of the CBDC.
As OMFIF points out, Private sector pressure from companies like Facebook has led 80% of the world’s central banks to seriously investigate the issue of a CBDC and assessment of the various infrastructure options, including blockchain, for digital currency networks.
In March 2020 The Bank of England has published an in-depth discussion paper dedicated to developing countries with transition countries, which analyzed the rapidly evolving payments landscape and the potential role of developing countries with transition countries in supporting the bank’s role of managing monetary and financial stability. The document contained a call for comments on the conceptual model of the Bank of England’s “platform” for the creation of a possible CBDC.
Just before he took over the role of Governor of the Bank of England that year, Andrew Bailey expressed skepticism about private and decentralized cryptocurrencies like Bitcoin (BTC)and warns investors that they should be better off “ready to lose” all of their money if they decided to keep the asset.
Bailey took a positive stance on CBDCIn July of this year, the bank stated that it will or will not continue to seriously consider the issue of digital currency issuance “as it has a huge impact on the nature of payments and society”.