The UK has appointed a joint task force that will help in the launch of a Digital Sterling. The joint task force will comprise the Bank of England and the HM Treasury.
The United Kingdom has unveiled new plans regarding the country’s Central Bank Digital Currency (CBDC). Chancellor Rishi Sunak stated that a joint task force would be created from the members of the Bank of England (BoE) and the HM Treasury. The BOE has earlier been involved in research into the feasibility of CBDCs where top central banks worldwide were involved.
Sunak made his announcement during a speech at a financial industry conference. He announced that they were proceeding with investigations to how a central bank digital currency will be launched in the country to transform the economy on the digital front.
CBDCs are a progressive development
Even though Sunak gave hints on plans to launch a digital sterling, he did confirm that the relevant stakeholders had approved the decision. Instead, the task force will explore the market and engage all relevant stakeholders to assess the risks and possibilities before launching the CBDC.
Sunak also affirmed that having a digital Sterling will not negatively affect the traditional economic system. Instead, it will help the UK become a pioneer among the countries that are already in the process of launching CBDCs.
China has surpassed other developed economies in terms of launching a central bank digital currency. Thailand has also recently been ranked on top for having the most mature form of a CBDC. Central banks around the world are also looking into launching digital currencies backed by the government.
Plans on Gaining Regional Control
Sunak’s move comes when the UK s looking for ways to regain its financial dominance after the impact of the closed Brexit deal. The Chancellor stated that they were looking towards creating a financial sector that will be transparent and more advanced in the technological field.
The Chancellor also added that the plans he had unveiled would be instrumental to boosting the growth of Fintech industries in the country. It will also make the digital financial market of this country strong enough to withstand the random changes happening as investors hist from traditional financial practices to digital ones. The UK has also been a significant hub for Fintech industries. This factor will be a great contributor to the success of a digital sterling and its adoption in the market.