Home » Currency News » Bank of England has no tech skills to issue CBDC yet: Deputy governor

According to one governor, the US is not ready to sell central bank digital currency (CBDC) because the Bank of England (BoE) does not have certain expertise.

Jon Canliffe, governor of the bank of England, told a national treasury select committee hearing on February 28th that the probability of the bank of England selling CBDC was more than 50 per cent, but regulators did not yet have the skills to sell digital currency.

Mr Canliffe indicated that the Bank of England was expected to acquire the necessary theoretical knowledge in the next stage to advance the research and development of CBDC, with the central bank planning to work with stakeholder partners to detect hidden digital elements.

But to the next stage, it will be to create a working prototype, test it in a simulated environment, then test it in a field environment, and then execute it. The goal of the next phase is to enable everyone to do that, "the lieutenant governor said."

Canliffe notes that hidden digital meta-design and construction is about to make a big difference, mainly depending on the motivation of CBDC. He said the Bank of England's basic motivation in the land could be to give digital cash, or digital currency equivalent to Bank of England banknotes, for "general payment destinations", adding:

"people don't want a system in which the Bank of England issues money in two ways, with total remuneration and no remuneration. In addition, we do not want such a system software, in this system, everyone's processed products will have the characteristics of deposit goods.

The president also elaborated on some hidden CBDC performance and benefits that are not yet available in the current financial system.

Comparing the hidden digits with Apple's iPhone app mall, Mr Canliffe said that the purpose of CBDC was to "open up a new frontier for people to improve the way payments and money are used." Referring to micropayments as a major potential test case for digital elements, he said:

"this will allow you to pay very, very small bills more and more. Therefore, if you want to read an article in the newspaper, you don't have to subscribe to the newspaper. You can do this with very little money.

The news comes at a time when more and more European governments are participating in the research and development of CBDC, and the Ministry of Finance opened a post in January 2023 to lead digital research and development of cadres. Previously, it was reported that Andrew Bailey, governor of the Bank of England, was sceptical about the short-term importance of CBDC, while European finance ministers once again endorsed the retail version of digital Europe.

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