UK’s legislative arm has inaugurated a committee to research the consequences of having a digital currency for the nation. The committee has thrown the research by seeking public opinion regarding the matter.
A UK CBDC Might Be Imminent
The move became necessary following a proposal by the UK’s apex bank and the treasury ministry looking to launch UK’s CBDC. Earlier in the year, the BoE put out vacancies to fill various CBDC-related positions. A move many interpreted as the bank’s interest in exploring a CBDC.
Also, British authorities revealed the establishment of a CBDC task force that would join forces with the BoE to perform the research about CBDC. This new move by the UK’s legislature is proof that the British authorities are using different tools to accomplish the same aim of establishing a national digital currency and how it can be applied in the country.
A member of the committee, Baron Forsyth, opined that “while there has been massive excitement globally regarding private digital currencies, the authorities must thoroughly examine the consequences of having a national digital currency.” He further said, “for better results, we want as many diverse opinions as we can get.
So, if anyone has the knowledge to share regarding this issue, our call for evidence is open to them.” Some aspects of the UK’s CBDC design will focus on privacy, payment tracking, and effects on innovation in the fintech sector. The BoE’s bi-annual finance reports discussed the growing popularity of digital assets, especially BTC. The report stated that the bank wouldn’t take any action since these assets aren’t a threat in any way to the economy.
Now that the UK’s financial regulator and apex bank are researching digital currencies, the apex bank will update the “non-threatening nature” of the digital assets in the new report. Also, it would be interesting to view details about the public CBDC inquiry by the committee in charge of CBDC research.
Turkey Seeks Local FinTechs’ Help For CBDC Research
Multiple reports reveal that Turkey’s apex bank has sought the help of various local fintech companies in creating a framework for its national digital currency. Establishing an agreement with these firms is an indication of Turkey’s readiness in hastening its launching of a CBDC. While three FinTech firms have been enrolled at this stage, Turkey’s central bank revealed that more partners would be enrolled at different stages of the development to run a test pilot of the digital Lira.
However, the apex bank didn’t reveal any planned schedule for the launch of its CBDC saying, “a final decision is yet to be made.” Turkey’s central bank plans to keep running trials till next year before deciding whether implementing the technology will suit the country’s economy. Turkey joins the list of nations in various regions of the world planning to launch their national digital currencies.
China remains the most advanced nation in terms of preparedness in rolling out a CBDC initiative. Residents of some provinces have already been allowed to perform settlement transactions using the digital Yuan.