The Bank of England has extended the deadline for its consultation on a central bank digital currency (CBDC) to June 30. The original deadline was June 7, but the central bank said it needed more time to gather feedback on the issue of non-residents and the digital pound.
The consultation paper, published in February, asked for views on several topics, including the design, distribution, and use of a CBDC. One of the key questions was whether non-UK residents should have access to the digital pound.
The Bank of England said it had received several comments on this issue and needed more time to consider them. The extension of the consultation deadline will give people more time to submit their views.
Other central banks are also exploring the possibility of a CBDC, not just the Bank of England. China, Sweden, and the Bahamas are among the countries that have already launched or are piloting CBDCs. The US Federal Reserve is also exploring the possibility of issuing a CBDC.
CBDCs are seen as a way to modernize the financial system and make it more efficient. They could also reduce the risk of economic instability. However, there are also concerns about the potential dangers of CBDCs, such as privacy and security.
The Bank of England said it would publish a summary of the feedback it receives from the consultation in the autumn. It will then decide whether to proceed with the development of a CBDC.
Here are some of the critical questions that the Bank of England is asking in its consultation:
What should the design of a CBDC be?
How should a CBDC be distributed?
How should a CBDC be used?
Should non-UK residents have access to the digital pound?
The Bank of England encourages people to submit their views on these and other questions. You can do so by visiting the Bank of England’s website.
The consultation is an important opportunity for people to have their say on the future of money. The Bank of England is listening to feedback and will use it to inform its decision on whether to proceed with the development of a CBDC.
The Bank of England is inviting feedback on all of these questions. There are two ways to share your feedback: online or via email. The deadline for submitting feedback is June 30.
The Bank of England is committed to considering all feedback received during the consultation. The central bank will publish a summary of the input and its response.
The development of a CBDC is a complex and challenging undertaking. The Bank of England is taking a cautious and considered approach to the issue. The central bank is committed to working with stakeholders to ensure that any CBDC that is introduced is safe, secure, and efficient.
“The digital pound would maintain public access to retail central bank money and, as our lifestyles and the economy become ever more digital, it would also prompt innovation, choice, and efficiency in domestic payments,” said the Bank of England.
The banking regulator and HM Treasury hinted at a potential launch of the CBDC before the end of the decade, with both entities pushing for a slow-and-steady approach. Designed to complement cash, the Bank of England remarked that all digital pound experiments would adhere to the existing data protection and privacy principles.
Russia gives the nod to non-resident CBDC use.
Russia’s State Duma Committee on the Financial Market has proposed amendments to the bill guiding the introduction of a digital ruble. Per the announcement, non-residents will have unrestricted access to the digital ruble through foreign banks or via the central bank.
The bill’s first iteration suggested that only authorized banks could offer CBDC services to non-residents. However, given Russia’s need for a digital ruble with cross-border functionalities, lawmakers deemed it necessary to recommend amendments to the bill.
