On Monday, the Finance Minister of Britain Rishi Sunak has told the Bank of England to look forward for creating a central bank digital currency to tackle the challenges by cryptocurrencies like bitcoin and to improve the payments system in the country. In order to create their central bank digital currency, the Treasury and Bank of England has also announced a joint task force on Monday for evaluating the formation of the same.
These days, cryptocurrencies has become a new trend and a mode of payment which is gradually covering a lot of markets worldwide. Keeping the new currency trend in mind, Rishi Sunak recognises the need of the new central bank currencies in Britain as well. He said in order to lead and to be in the front of financial innovation, Britain needs to move further than their current situation.
A digital currency backed by Bank of England will most probably helps in encouraging many businesspersons as well as a lot of consumers to hold accounts with the bank directly. The new digital currency will help their customers to make payments and they will prefer their bank while avoiding others.
Sunak said to a financial industry conference that they are planning to launch a new taskforce with the help of the Treasury and the Bank of England for managing and organising “exploratory work on a potential central bank digital currency (CBDC),”
On the finance ministry’s announcement of this new taskforce for creating a central bank digital currency, Sunak replied with a tweet and wrote just a single word “Britcoin”.
There are also several other central banks that are also considering to set up digital versions of their own currencies. If this will happen then it may possibly going to help in speeding up the domestic as well as the foreign payments along with reducing the risks of financial stability. Overall, China is in number one after launching a CBDC.
In addition to that, the European Central Bank previous week has said that it was reviewing an electronic cash form in order to match or complement banknotes as well as coins. However, it will take many years of its launch.
As of now, Cryptocurrencies are becoming a major player in the economy of the world and it keeps on growing with no break. These digital currencies have established rising interest from the financial institutions mainstream, and now the most popular Cryptocurrency ‘Bitcoin’ has hit a high record of about $65,000 on 14th April 2021.
