- The Bank of England is currently analyzing whether they should be creating digital currency or not.
- The officials published a discussion paper on how they could be possibly issuing digital currency i.e., the digital pound sterling.
- The primary point of discussion is the vulnerability of digital currency and debit cards.
The Bank of England is currently analyzing whether they should be creating digital currency or not. The Bank of England is the central bank of the United Kingdom, founded on July 27, 1964, and currently governed by Andrew Bailey.
The bank is considering whether to issue an electronic version of its banknotes, keeping in mind the way the Britishers will react. The officials published a discussion paper on how they could be possibly issuing digital currency i.e., the digital pound sterling.
The official statement by the Governor of BOE
On July 13, 2020, Andrew Bailey stated in a webinar event that the officials were discussing the threats and opportunities for creating and issuing digital currency. He also added they had not concluded. However, they would be continuing to look at the pros and cons since it has a huge impact on the nature of payments and society.
According to reports, the use of debit cards surpassed the use of cash as the most popular form of payment in the United Kingdom. Debit cards accounted for 39 percent of all transactions in the year 2019. While in comparison with physical notes and coins, which accounted for only 28 percent.
International Acceptance of digital currency
The Bank of England (BOE) is one of the members of a major central bank group. This group comprises of the central banks from around the world evaluating the potentiality of developing a digital currency of their own. However, it will take some time before the UK, and the Bank of England can create a digital currency system for making payments. Along with that, the groups also discuss the future of digital currency following the trading policies.
The major point of discussion is the vulnerability of digital currency and debit cards. Cash is generally more secure as the central bank issues it in comparison to the digital currency and payments app, which highly depend upon the commercial institutions.