Bank of England says CBDC launch looks ‘quite likely’.

Britain will have to issue a national digital currency (CBDC) so that public money can endure the expansion of private alternatives. This was stated by Jon Cunliffe, Deputy Governor of the Bank of England.

The Bank of England has issued banknotes for over 300 years. Jon Cunliffe talks about future of money in the UK in an increasingly digital world. https://t.co/6Y4Tj8kWO4 pic.twitter.com/MD1khh7J14

— Bank of England (@bankofengland) May 13, 2021

\”Perhaps we have not yet reached this. But in Britain this looks quite likely: if we want to preserve public money, we will have to issue a national digital currency capable of meeting modern needs,\” the official explained.

According to Cunliffe, regulators need to assess the risks and benefits associated with digital currencies. He called CBDC a major state project that will affect not only the economy but society as a whole.

Cunliffe also pointed to the inevitable emergence of private stablecoins from major technology companies. In his view, these instruments will gain greater functionality and be more efficient than offerings from commercial banks.

In November 2020, the regulator’s Chief Economist Andy Haldane acknowledged that the use of digital currencies could improve financial stability.

In March 2021, UK Financial Services Minister John Glen said that the country would primarily focus on regulating stablecoins.

In April, the Bank of England, together with Her Majesty’s Treasury, established a working group to study CBDC.

In the same month, the regulator posted several vacancies related to working on a digital currency.