In Brief:
- The Bank of England and the U.K. Treasury will start a consultation next year to explore the case for a central bank digital currency (CBDC)
- The possible rollout of CBDC would be in the second half of the decade
- The Bank of England and the Treasury stated that still it is not clear whether CBDC will be introduced.
Today, the UK Treasury, and The Bank of England announced consultation for the central bank digital currency (CBDC) to study and understand its behaviour and impact on the economy, which could be launched in 2022.
In April, The Bank had and the Financial Ministry had already created a task force to observe and explore the rollout of a CBDC. As per the sources, The consultation will assess and explore design features, benefits and implications for users to identify whether a CBDC has a fruitful future or not.
“If the results of this ‘development’ phase conclude that the case for CBDC is made, and that it is operationally and technologically robust, then the earliest date for launch of a U.K. CBDC would be in the second half of the decade,” said the central bank.
Moreover, The Bank of England and the Treasury stated that still it is not clear whether CBDC will be introduced.
In July, Chancellor of the Exchequer Rishi Sunak stated that local officials would be consulting on reforms “to support the safe adoption of crypto assets and stablecoins” and navigate the case for a CBDC in the country.
In Present, many countries including the world’s largest economy are planning to launch CBDC. Some countries have initiated pilot programs for testing purposes only. China’s digital yuan rollout is in a trial phase at some places in China. As per the report, nearly 140 million accounts have been holding digital currency.
