Calls for the creation and development of national currencies seem to be rising steadily. Another call has been made by one of the execs of the Bank of England (BoE) in support of digital currencies. According to Chief Cashier, Sarah John, central banks around the world all need to start taking central bank digital currencies very seriously.
Sarah John believes that central banks need to delve into deep research of digital currencies. Describing this need as “crucial”, she also added that there is a need for these central banks to have some synergy with related private companies. She said that this is necessary for the future and that central banks need to decide “whether a public sector or private sector would be best to provide a digital currency going forward.”
Sarah also seemed to suggest that the U.K. needs to be a bit more accommodating of digital currencies and the technology that powers it. She seems to suggest that since the growth of cryptocurrency is here to stay, the BoE along with central banks need to regulate the sector properly. This regulation would not just be for the digital currencies the central banks create, but also to make expectations clear for private cryptocurrency issuers.
In calling for the creation of CBDCs, many proponents have warned previously that the central banks of the world risk some relegation if they don’t act fast. Sarah corroborates this saying:
“Technology is moving on very fast so central banks are very alert to the fact that they could risk handing over complete control of our management of money.”
In October last year, the BoE admitted that Facebook’s Libra could become an important payment system. Probably as a response to that realization, the institution has officially begun research into digital currencies. Last month, the bank announced a coalition of seven members including six central banks, to research the creation and use of a CBDC.