The Bank of England published a document outlining different scenarios of possible risks and problems that would arise if the Central Bank decides to issue digital currency (CBDC).
The paper describes three models of CBDC depending on exactly who will get the opportunity to work with CBDC, from banks and financial organizations, nonfinancial organizations, households and specific individuals.
Related Articles
Model Financial Institutions Access implies that access to CBDC will be only from banks and other entities operating in the financial sector. Other organizations and households will have access to this digital currency.
Model Economy-wide Access implies that access to CBDC is available for banks and nbfe, households and firms. Thus, the CBDC can serve as money for all participants in the economic system. Although only banks and nbfe will be able to interact directly with the Central Bank for purchases and sales of CBDC. Other participants of the economic system must use special exchanges for the purchase or sale of CBDC.
Model Financial Institutions Plus is a kind of compromise between the first two.
The document notes that there is no reason to believe that the introduction of the CBDC will have a negative impact on lending or the provision of General liquidity.
Recently, the Central banks are closely engaged in the study of CBDC and their potential impact on the banking system. For example, last week the Central Bank of Norway has published a similar document for CBDC.
The post The Bank of England considered the possibility of introducing a National Digital Currency appeared first on FineCrypto.
FineCrypto
The post The Bank of England considered the possibility of introducing a national digital currency appeared first on Tech we trust.
