Bank of England Open To Central Bank Digital Currencies, Says BoE Governor Mark Carney

News | May 28, 2018 By:

Mark Carney, the governor of the United Kingdom’s central bank, the Bank of England (BoE), said that the BoE is open-minded about the possibility of a central bank digital currency (CBDC).

Speaking on a panel in Stockholm on the future of central banking, Carney said that while he is not opposed to the idea of implementing a CBDC, it is unlikely that they will be issued anytime soon. The BoE governor added that cryptocurrencies do not perform the role of money.

Carney’s latest statement is far cry from his previous dismissal of cryptocurrenies. In February of this year, the BoE governor said that cryptocurrencies are failing to fulfil their role as money.

“It [cryptocurrency] has pretty much failed thus far on… the traditional aspects of money,” Carney said at the time. “It is not a store of value because it is all over the map. Nobody uses it as a medium of exchange.”

In 2016, the UK central bank embarked on a multi-year research program to explore the implications of a CBDC. Earlier this month, the BoE published a working paper, laying out various scenarios of possible financial risks and instability issues of using a CBDC.

The BoE is not the only central bank looking into the possibility of issuing a CBDC. Earlier this month, Norges Bank, the Central Bank of Norway, published a document, which indicates its readiness to create a CBDC that will ensure confidence in the monetary system. The Bank of Canada and Riksbank, the central bank of Sweden, are also exploring the possibility of issuing CBDCs.