Sarah John, the Bank of England’s (BOE) chief cashier has said that she finds it crucial that the central banks dig in and research digital currencies, in order to strike a chord with private issuers. John said that it is pivotal that Bank of England, along with other banks, pay heed to the fact that the digital currencies are competent enough to be a new form of the payment system. If the research suggested that they do carry the capacity, they should pick up the pace and decide how to regulate it.
The Bank of England needs to be confident and make sure the U.K. doesn’t fall behind and has a plethora of payment methods at its disposal and the required knowledge to pull them off correctly. She told the daily telegraph that,
“It is absolutely right that central banks think about whether a public sector or private sector would be best to provide a digital currency going forward.” on Saturday.
Sarah, whose responsibility as a chief cashier is issuing banknotes noted that it’s crucial that central bank should determine the framework and involvement of the private sectors like Facebook releasing their own cryptocurrency, Libra.
A group was formed in January to look deeper into digital currencies, and the Bank of England was one of its seven members. It aimed to bring all these countries onboard and exchange information amongst each other, and research, explore the possibilities of a successful implementation.
Sweden’s Riksbank, one more prominent member of the group, recently announced that the e-krona initiative would be soon piloted by it, which would run until 2021. This would aid in enhancing the bank’s knowledge of CBDCs by running various tests on digital currencies in different situations. The Bank of Japan is on a similar wavelength and is speeding up its research, amidst the growing fears of China’s Yuan potential to be omnipotent in the coming years.