The central bank of the United Kingdom said people were using cash less and financial technology (fintech) firms have started to offer new forms of money and new ways to pay. The Bank posted a statement last week that these changes mean new opportunities and risks that the central bank needs to plan for.
Central bank digital currency (CBDC) is money that a central bank, like the Bank of England, can produce. It’s called digital (or electronic) because it isn’t physical money like notes and coins. It is in the form of an amount on a computer or similar device.
The central bank said it was looking closely at whether central bank digital currency in the UK should be introduced and how it might work if it is introduced. It said BoE has not made a decision to introduce one, so it hasn’t got a name, but a CBDC is not a cryptocurrency like bitcoin.
The Bank of England is speaking to businesses and communities to…