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Tom Mutton, director of fintech at the Bank of England, said they have not yet made any decisions regarding a CBDC

October 27, 2020

By doing 2nd Bund Summit on October 25th, The Bank of England’s fintech director Tom Mutton said the central bank’s digital currency, or CBDC, was “a priority” for the Bank of England, and the bank’s position last March has not changed .

“We haven’t made a decision on whether or not to introduce a retail CBDC.” Expressed mutton. “But we’re examining the pros and cons with interest.”

SpecialThe executive said the central bank is reviewing payment options for people in the UK affected by the COVID crisis “to provide safe, efficient and convenient payments to buyers and merchants”. Roles that a CBDC could potentially fulfill. That was added Privacy was “non-negotiable” for a retail CBDC. “It must not” affect “monetary and financial stability, and any digital currency issued by the bank” must be able to coexist and complement the bank’s paper and commercial money. “

Tom Mutton, director of fintech at the Bank of England, said they have not yet made any decisions regarding a CBDC
Tom Mutton, director of fintech at the Bank of England, said they have not yet made any decisions regarding a CBDC

Mutton said the challenge for the central bank in adopting a CBDC is to encourage competition and innovation among other forms of money, to ensure that technology does not “dictate policy”, and to work with other institutions to find solutions.

“We can’t do it alone”, Said mutton. “Central banks need to work with a wide variety of stakeholders given the breadth of issues presented by a CBDC.”

Hammel’s comments are consistent with those of other central bank leaders. In July the Governor of the Bank of England became Andrew Bailey said the bank is looking into the possibility of issuing a Fiat-supported digital currency. However, Bailey also criticized cryptocurrencies like Bitcoin (BTC), saying they lacked “intrinsic value”.