It is no secret that cryptocurrency is more popular than ever before worldwide. Besides the many strides that the industry has made in the private sector, world governments also seem to be embracing the idea of digital currencies. Perhaps the biggest trailblazer in this regard is China that has debuted its digital yuan token and following this announcement. Other countries like Canada, the British Virgin Islands, and the Bahamas have also announced their own tokens.
Now, another world power seems to have joined the bandwagon as it was announced on April 19, 2021, that the UK treasury and the Bank of England have created a task force to explore the possible development of a Central Bank Digital Currency for the UK.
The Plans for a Taskforce
This news was made public via a formal press release on the Bank of England’s website and stated that this exploration will be a joint venture between the Treasury itself and the Bank of England to determine the feasibility of a CBDC and explore the potential benefits of it.
Some details were given about the proposed token such as the intention for it to act as a new form of digital money that will be issued by the Bank of England. It will be used on both a domestic basis as well as for businesses. A dedicated unit will be created for the purpose of this exploration and the objectives, use cases, opportunities, and risks will be looked at before a final decision is made.
This task force will also be co-chaired by Deputy Governor for Financial Stability at the Bank of England, Jon Cunliffe, and HM Treasury’s Director General of Financial Services, Katharine Braddick.
Two forums will be created for this purpose; the engagement forum and the technological forum. The engagement forum will explore all the non-technical aspects of the token such as its use cases and its impact on citizens and the economy. The technological forum, on the other hand, will explore the technical aspects relating to the CBDC and both will report their findings after a given time
This announcement puts even more pressure on the United States to move forward with a digital dollar, the slowness of which they have been criticized for in the past. Regardless of what steps the US takes in response, it is clear that the era of CBDC is upon us fully.