NewsBTC
No Result
View All Result
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Breaking News: Bitcoin Exchange Gemini Makes A Splash On Nasdaq Debut, Jumping Nearly 50%
  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play GamesTry
  • CasinosTry
Bitcoin News
No Result
View All Result
Breaking News: Bitcoin Exchange Gemini Makes A Splash On Nasdaq Debut, Jumping Nearly 50%

Bank of England Does Groundwork for Central Bank Digital Currency

Gautham
Gautham
4 years ago
2 mins read
BANK OF ENGLAND a

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

The idea of creating a central bank backed digital currency is not a new thing. The digital currency community and central banks of various nations have floated this idea at one point or another. While most nations are yet to act upon it, the Bank of England is already doing the groundwork for such an implementation.

A ‘Staff Working Paper‘ published this month as part of the research commissioned by the Bank of England reports that introduction of a Bank of England backed digital currency may increase the gross domestic product of the Union. The paper titled “The macroeconomics of central bank issued digital currencies” is authored by John Barrdear and Michael Kumhof.

According to the authors, the Bank of England will be capable of increasing the country’s GDP permanently by about 3 percent with the introduction of a digital currency version of the existing fiat currency. In order to make such a significant change in the English economy, the central bank will have to issue digital currency units equivalent to 30 percent of the current GDP against government bonds. The proposal to create such digital currency was presented to the Lords Economic Affairs Committee by Ben Broadbent, the deputy governor of the Bank of England earlier today.

Ben has spoken about the idea of creating a blockchain based digital currency that can be operated by individuals and businesses alike in few other occasions as well. Unlike fiat accounts, all digital currency accounts can be managed by the central bank itself. The implementation of digital currency will also save a lot of money for the central bank, which would otherwise be spent on printing, distribution, and retrieval of banknotes to maintain enough liquidity in the market.

The report also outlines the risk of issuing central bank backed digital currency as it may lead to reduced liquidity in the banks. If the cash holdings of banks are reduced, then they will be unable to issue loans to customers, which in turn may hamper the economy. Also, a central bank issued digital currency can potentially make many private banks irrelevant as people can directly deal with the central bank, storing the digital money in their wallets instead of depositing in bank branches.

If the move to introduce digital currency is approved, the Bank of England may initially introduce a limited number of digital tokens for specific uses, like retail transfers etc.

Most of the data points and calculations in the report are based on empirical data and certain established models due to the absence of historical information on centralized digital currencies. The actual results, once the digital currency is introduced may vary from the report’s findings.

Ref: Finextra | Staff Working Paper | Image: The Telegraph

 

Tweet123Share196ShareSend
Gautham
Gautham

Gautham

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Related News

bitcoin

Bitcoin Breaks Above Mid-Term Holder Breakeven – Is A Fresh Rally Brewing?

Bitcoin (BTC) has surged from around $108,000 on September 1 to above $115,000 at the time of writing – recording...

Ash Tiwari 5 hours ago
Chainlink

Chainlink And Polymarket Forge New Alliance: LINK Forecasted To Outperform XRP By 2030

Chainlink (LINK), one of the crypto market’s leading providers of decentralized oracle solutions, has announced a partnership with the prediction...

Ronaldo Marquez 6 hours ago
Bitcoin price news

Bitcoin Bears Shaken—Analyst Says Local Bottom 90% Likely Set

Bitcoin’s current rebound off the $107,200 low has sparked renewed debate over whether the market has already set its local...

Jake Simmons 7 hours ago
Load More

Reason to trust

Strict editorial policy that focuses on accuracy, relevance, and impartiality
Created by industry experts and meticulously reviewed
The highest standards in reporting and publishing
How Our News is Made

Strict editorial policy that focuses on accuracy, relevance, and impartiality

Ad discliamer

Morbi pretium leo et nisl aliquam mollis. Quisque arcu lorem, ultricies quis pellentesque nec, ullamcorper eu odio.

Related News

Solana, Monero, SUI, pump.fun, chainlink

Solana Eyes Massive Breakout Amid $240 Retest, But Analyst Issues Crucial Market Warning

Rubmar Garcia 2 hours ago
bitcoin price btc btcusd 1

Bitcoin Climbs Past $115,000 on Inflation Relief and ETF Flows, But Bearish Signals Loom

James Halver 3 hours ago
Solana

Analyst Sets Bold $1,314 Target For Solana After Cup-And-Handle Breakout

Keshav Verma 4 hours ago

Premium Sponsors

Press Releases

  • トレーダー注目の新規コイン ― 仮想通貨1000倍リターンを狙える格安銘柄

    トレーダー注目の新規コイン ―...

    13 hours ago
  • ミームコインが注目のプレセールで100万ドル突破 ― Mine-to-Earn型報酬が話題に

    ...

    14 hours ago
  • Tyto 3 altcoiny explodují v aktuální sezóně – Bitcoin Hyper, Maxi Doge a Wepe SOL by mohly být dalšími generátory milionářů

    Maxi Doge ($MAXI): Investičná príležitosť medzi meme...

    19 hours ago
  • Maxi Doge ($MAXI): Investiční příležitost mezi meme...

    19 hours ago
  • イーサリアム...

    20 hours ago

Newsletter

About Us

NewsBTC is a cryptocurrency news service that covers bitcoin news today, technical analysis & forecasts for bitcoin price and other altcoins. Here at NewsBTC, we are dedicated to enlightening everyone about bitcoin and other cryptocurrencies.

We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.

Disclaimer: The information found on NewsBTC is for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.

Company

  • About Us
  • Advertising
  • Contact Us
  • Privacy Center

Social

© 2025 NewsBTC. All Rights Reserved.

  • Cryptocurrency News
    • Bitcoin News (BTC)
    • Ethereum News (ETH)
    • Ripple News (XRP)
    • Shiba Inu News (SHIB)
    • Cardano News (ADA)
    • Dogecoin News (DOGE)
    • Solana News (SOL)
    • Litecoin News (LTC)
    • Avalanche News (AVAX)
    • Polygon News (MATIC)
  • Crypto Prices
    • Binance Coin (BNB) Price
    • Bitcoin (BTC) Price
    • Cardano (ADA) Price
    • Chainlink (LINK) Price
    • Dogecoin (DOGE) Price
    • Ethereum (ETH) Price
    • Litecoin (LTC) Price
    • Polkadot (DOT) Price
  • Crypto Resources & Directory
  • All Crypto
  • Play Games
  • Casinos
Advertise

© 2025 NewsBTC. All Rights Reserved.

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy Center or Cookie Policy.