Evolution journalist
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Evolution journalist
Good people
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Bank of England officials are considering giving up plans to create digital pounds for families, amid increasing doubts about the project’s advantages.
The Bank of England has urged the banking sector to list innovations, payments that could provide similar benefits without the need for a digital currency of the Central Bank for consumers.
Digital currency or nothing, not even bitcoin
according to BloombergThe Governor Andrew Billy told Parliament on Tuesday that “”If work with commercial banks succeeds, I will need a lot of persuasion“On the need for britcoin.
The central bank’s decline in its previously supportive position of 24 million pounds on research and development since 2021.
This came amid more than 50,000 general advisory responses and legislators, privacy advocates, and conspiracy theory groups concerned with government monitoring of financial transactions.
Billy’s preference for distinctive banking deposits is in line with the Convention on Biological Diversity, with his concerns about obtaining “money from the banking system” and “the world of credit creation”.
The ruler calls for numbering current banking deposits instead of creating new forms of state -backed funds to consumers.
This shift occurs at a time when the global enthusiasm of CBDC fades, as the Trump administration prevents more American work with the genius law, and South Korea stops its demo program for digital currency.
The European Central Bank only continues to develop its project in the digital euro among the main economies.
The project faces criticism of escalating and technical challenges
Neil Record described the former economist in England, the digital pound initiative as a “white elephant”, led by the bank’s financial interests instead of consumer needs.
Critics argue that there is no convincing justification for the project, although the large taxpayers have been investing over the past three years.
The basic income of the bank is derived from the benefit by the physical currency holders, and the decline in monetary use threatens this economic model.
Cash payments fell from 51 % in 2013 to only 12 % in 2023, raising fears that the bank is looking for the importance of the digital currency as material funds become old.
The concerns of the opposition privacy are intensified because the proposed digital pound does not provide any interest payments and appears to be excessive of the need compared to the current banking infrastructure.
Commercial banks already provide digital payment services, pregnancy accounts, and financial security for deposits that are less than 85,000 pounds through the frameworks in force.
More than 50,000 consulting responses highlighted concerns about privacy and the effects of potential stability if investors are immersed in the state -backed digital currencies during crises, and money wanders from other financial sectors.
Lord Forseth criticize The initiative as a “solution in the search for a problem”, given huge spending without clear interest.
The last Boe Research has found contradictions from the launch of CBDC as consumers are increasingly adopting current online payment technologies.
The organizational focus turns into the supervision of stablecoin and bank restrictions
Pelly emphasized the important regular risks associated with banks that issue private Stablecoins, preferring preferred organized deposits that are in line with current banking practices.
The ruler has warned that the spread of Stablecoin can undermine sovereign monetary control and fragmented financial systems without appropriate supervision.
The Bank of England is implementing the standards of the Basel Committee, which restricts exposure to banks in the United Kingdom for encryption to 1 % of investments by 2026.
CEO David Billy described the next rules as “restricted”, encouraging banks to maintain the minimum exposure to the encrypted currency due to the increased risk of price volatility.
Financial behavior authority provides the “gate system” authorization framework for encryption companies by 2026, with the final touches on the organizational structures of custody and encryption services.
The organizational authority seeks to obtain general inputs about its plans to organize Stablecoins with the adoption of digital assets.
Pelly warned that emerging digital money models could disrupt financial confidence if they are left unregulated, which requires accurate monitoring of its effects on cash unit and “Singlence of Money”.
He asked about the role of backup currencies in the regulations in which payment technologies exceed traditional control mechanisms.
The Stablecoin Market has grown from $ 125 billion to $ 255 billion in less than two years, prompting organizational concerns about the possibility of fragmented monetary systems.
The Central Bank reserves the ability to launch CBDCS if there is a justification, but it gives priority to innovations to push the private sector on the state -backed alternatives.
The approach is a significant retreat from the 2021 sites when officials considered “potentially” necessary for future monetary systems.
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2025-07-23 09:25:00
