In a live virtual event, the Bank of England Governor Andrew Bailey and Deputy Governor for financial stability Sir Jon Cunliffe commented about the growth of innovation surrounding digital currencies in the country.
He said, "It's quite difficult to predict how innovators will take money and actually use money going forward. But we are starting to see programmable money being used in the crypto world. And I would expect we would see a similar revolution in the functionality of money driven by technology."
The Bank of England is currently exploring options to implement a digital pound CBDC for retail payments. A task force behind the CBDC is also investigating the use of a digital pound for distributing payrolls, pensions, etc.
Sir Cunliffe admitted that the current state of crypto affairs could potentially threaten financial stability within the country. The market cap on cryptocurrencies has surged to $2.6 trillion in a very short time, with an estimated 95% of digital assets being unbanked and 5% consisting of stable coins.
On the opposite side of the Atlantic, the United States has less of a positive outlook, saying that regulated stable coins designed by the private sector make CBDCs redundant.
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