European Central Bank continues to study the potential launch of a digital euro. While euro-zone finance ministers threw their support behind the concept of digital money, the Bank of England (BoE) disagrees.
According to multiple sources, the Governor of the Bank of England appeared to be less enthusiastic about the idea of a digital pound.
During a meeting with parliament's Treasury Select Committee, Andrew Bailey, Governor of the Bank of England, expressed skepticism about the need for a digital pound. He stated that the bank's current wholesale central bank money settlement system is sufficient.
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He also highlighted that the bank has no plan to cancel cash money. Bailey was also not convinced that retail payment systems “need this sort of upgrade at the moment.”
"I think it’s an open question whether a wholesale digital central bank currency is needed because we’ve got a wholesale central bank money settlement system with a major upgrade,” said Bailey.
Conversely, 19 finance ministers from countries in the EU, that use the euro as fiat currency, issued a statement on Jan 16. The statement expressed ministers’ support for continued preparatory work on a digital euro.
Ministers also emphasized that any digital euro should complement and not replace cash. They suggested exploring offline functionality to serve a wide range of uses and contribute to financial inclusion.
The EU is expected to publish a draft law this year, outlining how a digital euro would fit into existing laws and regulations.
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