Bank of England to explore a potential Central Bank Digital Currency

Re:Bank of England to explore a potential Central Bank Digit... by Nursie on Monday April 19, 2021 @06:04AM (#26860960)

The change here, from what I can tell, is that you could have consumers directly dealing with the central bank, holding accounts directly with it, cutting out the traditional retail banks.

I'm not sure one way or another if that's a good idea, and I guess they aren't either, hence the forming a committee to investigate.

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Re:Bank of England to explore a potential Central Bank Digit... by gajotron on Monday April 19, 2021 @06:35AM (#26861136)

This process of cutting out traditional retail banks destroys liquidity, which the central bank knows it would probably have to offset through either becoming an explicit uncollateralised lender to banks or other monetary policy. They are likely to be very conservative about that.

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Re:Bank of England to explore a potential Central Bank Digit... by vishnugupta on Monday April 19, 2021 @06:30AM (#26861099)

Indeed, that's the biggest change I could think of. Another, minor but important, change is CBDC will completely eliminate physical cash. How will that pan out is to be seen.

FWIW, China has been the farthest on this path to the extent that they are claiming they will do a 100% rollout by next year's Winter Olympics.

This is a really interesting phase in this space.

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