Bank of England and HM Treasury Launch Taskforce for UK CBDC
The Bank of England and HM Treasury have announced the launch of a taskforce to explore a potential U.K. central bank digital currency (CBDC).
The U.K. central bank and government have not yet decided whether to launch a CBDC, so will use the task force to explore the practicalities of doing so, according to an announcement Monday.
The Bank of England stated that a CBDC would not replace cash and bank deposits but exist alongside them.
As part of the task force, two forums will be established, one focusing on engaging senior stakeholders and the other to gather input from the technology sector.
Thus far, the Bank of England’s work on a CBDC has been limited to a discussion paper published in March 2020, so this is the first sign of any practical exploration taking place.
The Treasury also announced it would explore how blockchain can improve financial market infrastructure in a new sandbox (a testing environment used to explore the application of certain technology in a safe and secure way). This will be delivered alongside the Bank of England and the Financial Conduct Authority (FCA).
See also: A Digital Euro Must Protect Privacy, ECB Public Survey Reveals
