(Bank of England) The Bank of England is evaluating the option of establishing its digital currency to complement the existing banknotes.
The final decision has not been made on whether to launch the CBDC. The BoE is consulting on the benefits, potential risks, and the realities of successfully implementing a digital pound.
CBDCs are cryptocurrencies, which are pegged to the controlling central bank and domestic national currency. The CBDCs work as stablecoins whereby its value is influenced by an underlying asset.
The projected launch of the CBDC should not undermine the BoE’s capacity to manage monetary policy and promote fiscal stability.
The aim of the Bank of England is to improve the payment system in the UK Economy. The digital currency should be safe, viable and easy to understand for the people.
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