Great Britain is another country that has started research on the possibility of creating a digital currency of the central bank (CBDC). The government is currently establishing a dedicated task force for digital currency.
UK is researching CBDC
Her Majesty’s Treasury and the Bank of England have just started preliminary research into the central bank’s digital currency that could lead to the emergence of a national digital currency. IN a document published by HM Treasury announced the creation of a CBDC Task Force in cooperation with the UK Central Bank.
Jon Cunliffe, Deputy Chairman of the Bank of England, and Katharine Braddick, Chief Executive Officer of Financial Services at HM Treasury, will co-chair the team of experts.
According to the paper, this group will help to concentrate the efforts of all relevant UK state authorities in the field of CBDC development. As part of his duties, he will also examine preliminary issues related to the design, implementation and operation of CBDC in the UK. The team will also engage with stakeholders from academia, fintechs and other industry representatives to identify potential technological hurdles.
The HM Treasury and BoE task force will also monitor CBDC events internationally.
The central bank will also operate its own internal CBDC unit, led by Jon Cunliffe, according to a BoE press release on Monday.
Development of fintechs in the UK
What is worth adding, the creation of the task force is yet another proof that after Brexit, the UK government focuses on digital currencies and fintech. In November 2020, Rishi Sunak, Chancellor of the Treasury, said Brexit had given Britain the chance to reorganize the financial services sector.
Since Brexit, Sunak has oversaw a significant shift in his country’s policy towards greater use of fintech innovations such as CBDC and stablecoins.
According to a Reuters report, the UK financial market is now also focused on distributed ledger technology companies. Speaking at Monday’s financial industry conference, Sunak announced that the government plans to create a fintech sandbox for blockchain startups.