Cryptocurrency

Bank of England official says digital pound provides big opportunity for businesses

Bank of England official Ben Broadbent expressed optimism that the proposed Bank of England digital currency, the digital pound, could offer lucrative opportunities for businesses in the region.

On February 7, the Bank of England and the UK Treasury announced plans to explore potential use cases for a government-backed digital pound to be developed on a private blockchain to replace Bitcoin.

BOE Deputy Governor for Monetary Policy Ben Broadbent said financial services built on new technologies such as blockchain are easy to adopt. bloomberg news Reported on February 27th.

He said the digital pound “clearly presents opportunities for financial institutions, businesses and individuals.

Specifically, the digital pound will provide a faster alternative to online payments, reduce payment costs for businesses and help protect the financial stability of the pound.

Broadbent said he expects the digital pound to improve, leading to less friction and lower payment costs.

digital pound plan

The Bank of England (BOE) has launched plans to launch a digital pound after finding that cash use in the UK has fallen by 15% as of 2021.

Plans to launch a digital pound will help banks increase the availability of cash and enable businesses and individuals to settle transactions faster.

According to the BOE, digital pound holders will not earn interest on their holdings. This helps discourage consumers from withdrawing all their assets from traditional banks.

In addition to Digital Pound, the agency said it will launch a digital wallet that will make it easier for users to use their assets, similar to a contactless payment app.

In the meantime, the BoE and the Ministry of Finance are soliciting feedback on how to improve the digital pound before moving on to the design phase after June 7th.

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