BoE Reassures Privacy-Centric CBDC
The Bank of England is re-establishing the pound as the preferred global reserve currency through a Central Bank Digital Currency (CBDC). The rise of the digital economy post-Covid-19 has led to governments considering decentralized ledger technologies (DLTs). The digital economy is sustainable and scalable, benefiting both the forex market and the cryptocurrency market.
The Bank of England has collaborated with various entities to develop a Central Bank Digital Currency (CBDC). In February 2022, the Bank collaborated on a twelve-month research project on CBDC. The BoE has conducted public consultations on developing and implementing CBDC. The digital sterling, or Britcoin, will focus on user privacy. The bank may explore other technologies beyond blockchain, but will prioritize user data security to prevent the government from becoming a tracking agent for users.
Reportedly, the Bank of England is comparing the efficiency of using blockchain technology over traditional conventional ledgers in developing the CBDC that is compatible with the private sector.
(With inputs from Shikha Singh)
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