Featured Product

    BoE Publishes Discussion Paper on Central Bank Digital Currency

    March 12, 2020

    BoE published a discussion paper that focuses on the appropriate design of a central bank digital currency (CBDC) and an evaluation of whether the benefits of CBDC outweigh the risks. The discussion paper outlines an illustrative model of CBDC designed to store value and enable UK payments by households and businesses. BoE has outlined the key questions for further research at the end of this paper and requested feedback by June 12, 2020. BoE invites feedback and ideas from the public, technology providers, the payments industry, financial institutions, academics, and other central banks and public authorities.

    BoE has not yet made a decision on whether to introduce CBDC and this discussion paper is part of that process. The paper is intended to be the basis for further research and dialog between BoE and the payments industry, technology providers, payments users, financial institutions, academics, other central banks, and public authorities. Anyone with an interest in these fundamental issues is encouraged to respond to BoE on the potential benefits, risks, and practicality of CBDC. The paper highlights that CBDC could present a number of opportunities for the way BoE achieves its objectives of maintaining monetary and financial stability. CBDC would also introduce important policy challenges and risks that need to be carefully considered and managed. The paper outlines an illustrative platform model of CBDC, designed to enable households and businesses to make payments and store value.  

    Choices around technology would have a major impact on the extent to which CBDC meets the overall objectives. Although CBDC is often associated with Distributed Ledger Technology (DLT), it is not presumed that any CBDC must be built using DLT and that there is no inherent reason it could not be built using more conventional centralized technology. However, DLT does include some potentially useful innovations, which may be helpful when considering the design of CBDC. Given the wide‑ranging implications of CBDC for the BoE objectives and the wider economy, any eventual decision to introduce a CBDC would involve Her Majesty’s government, Parliament, and regulatory authorities, in addition to engagement with society more generally.

     

    Related Links

    Keywords: Europe, UK, Banking, CBDC, Digital Currencies, Fintech, Distributed Ledger Technology, Regtech, Blockchain, BoE

    Related Articles
    News

    BCBS Finalizes Revisions to Credit Valuation Adjustment Risk Framework

    BCBS Finalizes Revisions to Credit Valuation Adjustment Risk Framework

    July 08, 2020 WebPage Regulatory News
    News

    PRA Statement on Application of Matching Adjustment Amid Crisis

    PRA published a statement to insurers that clarifies the approach to application of the matching adjustment during COVID-19 crisis.

    July 07, 2020 WebPage Regulatory News
    News

    EBA Provides Clarity on Implementation of Certain COVID-19 Policies

    EBA published a report on the implementation of selected COVID-19 policies within the prudential framework for banking sector.

    July 07, 2020 WebPage Regulatory News
    News

    EC Consults on Revision of Network and Information Systems Directive

    EC launched a consultation to revise the network and information systems (NIS) Directive (2016/1148), which was adopted in July 2016 and is the first horizontal internal market instrument aimed at improving the resilience of the EU against cybersecurity risks.

    July 07, 2020 WebPage Regulatory News
    News

    PRA Statement on LIBOR Transition and PRA Resolution-Related Rules

    PRA published a statement that outlines its view on the implications of LIBOR transition for contracts in scope of the “Contractual Recognition of Bail-In” and “Stay in Resolution” parts of the PRA Rulebook.

    July 07, 2020 WebPage Regulatory News
    News

    PRA Issues Updates to Pillar 2A Capital Framework in UK

    PRA published the policy statement PS15/20 to reflect additional resilience associated with higher macro-prudential buffers in a standard risk environment with a reduction in Pillar 2A capital requirements.

    July 06, 2020 WebPage Regulatory News
    News

    BCBS Report Examines Progress on Adoption of Basel III Framework

    BCBS published the eighteenth progress report on implementation of the Basel III regulatory framework in member jurisdictions.

    July 06, 2020 WebPage Regulatory News
    News

    FCA Proposes Guidance to Further Support Consumer Credit Customers

    FCA announced proposals that would provide continued support for certain consumer credit products to users, who are facing a financial impact because of the exceptional circumstances arising from the COVID-19 pandemic.

    July 03, 2020 WebPage Regulatory News
    News

    ACPR Publishes Draft of Taxonomy RAN 1.4.0 for Solvency II Reporting

    ACPR published a draft version of taxonomy RAN 1.4.0_PWD1, along with the related documentation, for Solvency II reporting.

    July 03, 2020 WebPage Regulatory News
    News

    BCBS Amends Guidelines on Sound Management of AML/CFT Risks

    BCBS amended the guidelines on sound management of risks related to money laundering and financing of terrorism (ML/FT).

    July 02, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 5445