Technology NewsThe governor of the Bank of England questions the...

The governor of the Bank of England questions the need for a digital pound


Meanwhile, Iran and Russia are exploring the creation of a new gold-backed stablecoin.

Andrew Bailey, Governor of the Bank of England (BoE). expressed skepticism about the need for a digital pound shortly after eurozone finance ministers endorsed further work on the digital euro.

The governor of the BoE recently questioned the need for a wholesale central bank digital currency (CBDC), citing the existence of a “wholesale central bank cash settlement system that has been significantly enhanced”. Bailey also stated that there are no plans to eliminate cash for retail use. According to the BoE governor, there is no need to change personal wages at the moment.

“We need to be very clear about what problem we’re trying to solve here before we get carried away by technology and ideation,” he said.

Bailey’s comments follow new CBDC developments in the eurozone and recent comments from a former BoE adviser about the costs and risks of creating a CBDC.

On January 16, the finance ministers of the euro area countries published a statement in which they supported the continuation of work on a potential digital euro, which is being investigated by the European Central Bank. The Eurogroup acknowledged that the introduction of CBDC requires further discussions at the political level. In addition, the group highlighted issues it observed, including environmental impacts, privacy, financial stability and other issues.

On the same day, former BoE adviser Tony Yates argued in an opinion piece in the Financial Times that the costs and risks involved in developing CBDCs are not worth it. In addition, Yates questioned the motivations behind the creation of CBDCs, calling them “suspicious”.

Meanwhile, Iran and Russia are exploring the creation of a new gold-backed stablecoin. According to a report by Russian news agency Vedomosti, Iran is working with Russia to create a so-called “Persian Gulf token” that would enable cross-border transactions.

Hardware, software, tests, interesting and colorful news from the world of IT by clicking here!


Please enter your comment!
Please enter your name here

Latest news

all about the upcoming Redmi Band 2

The new generation of the Redmi smart bracelet will be presented very soon, and we already know its...

கடந்த காலத்தை குறியீடாக்குதல் – மர்மமான மாபெரும் அழிந்துபோன கடல் ஊர்வன கல்லறையின் தோற்றத்தை விஞ்ஞானிகள் கண்டுபிடித்துள்ளனர்

இக்தியோசர் இனத்தின் வயது வந்தோர் மற்றும் இளம் பருவத்தினர் ஷோனிசரஸ் பிரபலமானது 230 மில்லியன் ஆண்டுகளுக்கு முன்பு அம்மோனாய்டு இரையைத் துரத்தியது, இப்போது பெர்லின்-இக்தியோசர்...

Canonical has announced the availability of Ubuntu Pro subscriptions. What does this mean for regular users of this distro?

Canonical announced this morning that their Ubuntu Pro subscription service has been promoted from beta to general availability...

Hive Ransomware Infrastructure Seized in Joint International Law Enforcement Effort

Jan 26, 2023Ravie LakshmananEncryption / Ransomware The infrastructure associated with the Hive ransomware-as-a-service (RaaS) operation has been seized as...

Elite IT bachelor’s degree program starts at a domestic university

From artificial intelligence to digital molecular medical biology, students can acquire up-to-date knowledge and an internationally valuable diploma. ...

ZTE Blade V40 shows its face, specs revealed

ZTE has yet another V40 device up its sleeve and it's the Blade V40, that surfaced in Bangladesh....

Must read