Mark Carney Bank of England Governor Said He is Open Minded About a Central Bank Digital Currency

There are several central banks all over the world that are starting to embrace blockchain technology and cryptocurrencies and the Bank of England is one of them. Its Governor, Mr. Mark Carney said that he is open minded about a central bank digital currency – also known as CBDC.

Bank of England Digital Currency

The Bank of England has always had an open position towards CBDG and the Governor of the bank confirmed it again.

United Kingdom

United Kingdom

During a conference at the Riksbank Mr. Carney said that he has an open mind about using a CBDC. This is in line with what he said in march before the G-20 financial meeting in Buenos Aires, when he explained that cryptocurrencies do not pose risks for the global financial stability.

According to Reuters Mark Carney said:

“The FSB’s initial assessment is that his successor as governor of the Bank of England would be overseeing a more open watchdog focused on analysing the existing rules rather than pushing new standards.”

At the same time, during the 350th anniversary of Riksbank, Carney stated that central banks need to work and maintain the public trust in the financial system. And if this is related with incorporating new CBDCs then, why not to do it?

Other CBDCs Around the World

Many different central banks all over the world are starting to think about the possibility of issuing CBDCs. The situation has been analysed not only by the Bank of England, but also by other banks, including the Central Bank of Canada or the Norges Bank.

Earlier this month, Norges Bank released an official document in which it studies the possible effects of issuing CBDC.

The document written by the bank reads as follows:

“This report, prepared by a Norges bank working group, provides an overview of aspects that should be given weight in assessing whether Norges Bank should issue a CBDC. A CBDC can be designed in various ways, depending on the desired aims.”

Until now, there is no international experience regarding CBDCs; and the bank explains that it will be necessary to keep analysing other possible effects of these digital assets.

Some countries, including Venezuela and Russia, have been working on their own cryptocurrencies. But there are different intentions behind them. They try to avoid international sanctions and dependency on the US dollar. These currencies cannot be considered as CBDCs, but as an innovative way to issue debt and gain access to non-traditional financial markets.

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Author: Carlos Terenzi”