Bringing up the need for a new way, the Bank of England is increasing its pressure on the digital pound.
Studies on the global central bank digital currency (CBDC) have intensified. Europe in particular focused on digital assets and blockchain after MiCA regulations. The Bank of England is also doing similar work. Bank of England Strategy Head William Lovell gave the message that they are pushing for the digital pound.
Lovell underlined the need for a new way, pointing out that the way people pay and the method of payment has changed.
Bank of England Strikes for Digital Pound
The Bank of England argued that there is a new way free of digital currency risks.
William Lovell, Head of Strategy at the Bank of England, said: “As the way people pay, the risk profile changes and so does what we need to do as a central bank.” said. Lovell’s focus is on making the digital pound a stronger and more efficient CBDC.
Transferring his views on the subject, Lovell said;
A ten pound CBDC will be like a ten pound note. We think it’s really important to give people this option, as we’re seeing a decline in the use of cash in the UK.
Lovell also stated that the Bank of England fell on the use of CBDC in offline payments. In this context, the cooperation with the Bank of Canada for the digital pound was emphasized.
The Bank of England’s target CBDC is planned to have no access to user data and have anti-money laundering efficiency. This proposed new CBDC aims to reduce the risk of banking transactions while ensuring confidentiality.
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