The digital British pound enters the design phase. Visit MNBC (Central Bank Digital Currencies) are making their way around the world, under the impetus of numerous governments. Will regulation, currently under construction in each country, aim to stifle stablecoins and other cryptos to make way for state-owned digital currencies? England, on the other hand, seems to be gradually making its choice. Read on.
Crypto and stablecoins, threats to the financial system?
As we know, England and its central bank don’t hold cryptocurrencies close to their hearts. A few months ago, the bank was even concerned about the emergence of the famous stablecoins. Jon Cunliffevice-governor of the Bank of England (BoE) even described them as a « threat » to the financial stability of the British economy. A better first approach.
« We must guard against rapid and disruptive changes that leave no time for the financial system to adapt and threaten its stability. »
Jon Cunliffe wants to move MNBC’s project forward quickly so as not to be overtaken by the adoption of these stablecoins deemed so dangerous. In an attempt to regulate all this, we learned at the end of June that King Charles had just signed the Financial Services and Markets Bill. As a result, UK regulators can now regulate cryptocurrencies and stablecoins like any other financial activity.
Continuing in the same vein, the latest report published on August 8 by the British Treasury leaves little doubt. The entity in charge of overseeing regulation of the sector would be none other than the BoE. Given their disenchantment with cryptocurrencies and distrust of stablecoins, we can expect anything but reasoned regulation to allow the sector to develop.
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But MNBCs will save us…
At the same time, England is busy preparing the ground for its MNBC. It’s hard to believe they’ll go as far as stifle crypto and stablecoin initiatives with a barrage of regulations to buy time until their own MNBC emerges, it’s just a step we won’t take.
In the meantime, the BoE strengthens to initiate the design phase of its future MNBC. It has just set up the CBDC Academic Advisory Group (AAG). Its aim is to appeal to academics and researchers. They would like to ask for their help and advice in developing this famous MNBC.
The fields of study for establishing this digital book are varied: monetary policy, finance, competition economics, industrial organization, behavioral science, legislation, innovation theory and marketing. And yes, we’re going to have to sell this famous currency to the general public, as some people see it. as a monetary death starand it’s hard to see why. Other than to reinforce state control over money and consign our private lives to oblivion. Even the banking authorities can’t convincingly justify the real need to create such a currency:
« (…) the digital pound is likely to be needed in the future, so our work will now evolve towards a design phase. »
The AAG will be joining forces with the BoE and the UK Treasury in the design of this MNBC. Together with experts from all sectors, they will collaborate on this proof-of-concept phase, which is intended to pave the way for « acceleration » when the time comes. The support of researchers could also be used as a justification to the general public. This is to support the need for an MNBC, since, in the words of the BoE’s head of FinTech, « it’s going to happen anyway », « Bitcoin is not a currency »..
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