UK to launch digital currency task force

UK to launch digital currency task force

The UK government and the Bank of England will jointly explore the potential of creating a central bank digital currency (CBDC), as part of a series of measures to boost the country’s fintech sector.Feb21

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The chancellor, Rishi Sunak, announced on Monday that he would set up a task force to look into the benefits and risks of a CBDC, which would allow households and businesses to directly hold digital money issued by the central bank.

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The move comes amid growing interest in CBDCs around the world, as central banks seek to respond to the challenges posed by cryptocurrencies and the decline of cash. China is already testing its own digital yuan, while the European Central Bank and the US Federal Reserve are also studying the issue.

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Sunak said the UK wanted to be “at the cutting edge of innovation” and “cement the UK’s position as the world’s pre-eminent financial centre”. He also announced other initiatives to support the fintech industry, such as:

  • A new “scale box” to help fintech firms grow and access capital markets.
  • A pilot scheme for a “digital sandbox” to allow fintech start-ups to test their products in a regulated environment.
  • A review of the UK’s listing rules to make them more attractive for tech companies.
  • A new “tech visa” to make it easier for fintech talent to work in the UK.
  • A new “centre for finance, innovation and technology” to foster collaboration and research.

Source : CNBC

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