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Bank of England contemplates a digital currency

Updated: Jul 25, 2024
Published: Jul 14, 2020
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Today, the governor of the Bank of England Andrew Bailey, confirmed that they are considering whether or not they should release a central bank-issued digital currency. The news broke via Bloomberg this morning where the governor was quoted saying: “We are looking at the question of, should we create a Bank of England digital currency. We’ll go on looking at it, as it does have huge implications on the nature of payments and society.

Timeline

Given the current economic situation, it may be some time before the BoE is able to give undivided attention to the matter of a CBDC. Because as governor Bailey stated, it has huge implications on society and has to be dealt with carefully. According to him, in a few years time they’d be “heading towards some sort of digital currency”.

The Ignition

This topic was mainly ignited by Facebook’s project Libra as it sent central banks from around the world into a fast-release a digital version of their currencies. China for example, has already begun testing its CBDC in a few cities. Therefore, the timeline of the BoE may be a little behind schedule if it takes multiple years.

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