Bank of England governor Andrew Bailey and deputy governor for financial stability Sir Jon Cunliffe have reportedly both shared their views of CBDCs bringing revolutions to the future of money.
Particularly, the remarks were reportedly made in response to a few inquiries, made by regulators from the Economic Affairs Committee, via a live streaming session on November 24th.
“It’s quite difficult to predict how innovators will take the money and actually use money going forward. But we are starting to see programmable money being used in the crypto world. And I would expect we would see a similar revolution in the functionality of money driven by technology.”
The Bank of England is reportedly investing time and resources in discovering measures for implementing a digital pound CBDC catering to retail payments.
A task force behind the CBDC is further making investigations into the use of a digital pound for distributing payrolls, pensions, etc.
Sir Cunliffe – in an attempt to back the initiative – reportedly mentioned the quickly decreasing use of cash in the United Kingdom throughout the past years, which was majorly fast-tracked by the advent of the global health pandemic, where people are more hesitant towards physical contact in transactions.
Consequently, approximately 30% of transactions in the nation now take place via e-commerce.
“We’ve modeled a very prudent assumption, which is that basically 20% of [household and corporate transactional] deposits based in the banking system could move out of the banking system and into central bank digital money.” Sir Cunliffe further comments, regarding the potential demand of a digital pound CBDC.
Nonetheless, Sir Cunliffe admitted that the existing status of crypto affairs may bring potential harm to the financial stability within the nation.