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

    EU Amends CRD4 and CRD5 as Part of Capital Markets Recovery Package

    EU published Directive 2021/338, which amends the Markets in Financial Instruments Directive (MiFID) II and the Capital Requirements Directives (CRD 4 and 5) to facilitate recovery from the COVID-19 crisis.

    February 26, 2021 WebPage Regulatory News
    News

    EU Committee Recommends Systemic Risk Buffer of 4.5% in Norway

    The Standing Committee of the European Free Trade Association (EFTA) recommended that a systemic risk buffer level of 4.5% for domestic exposures can be considered appropriate for addressing the identified systemic risks to the stability of the financial system in Norway.

    February 25, 2021 WebPage Regulatory News
    News

    PRA Clarifies Approach to Onshoring of Credit Risk Rules for UK Banks

    In a recent statement, PRA clarified its approach to the application of certain EU regulatory technical standards and EBA guidelines on standardized and internal ratings-based approaches to credit risk, following the end of the Brexit transition.

    February 25, 2021 WebPage Regulatory News
    News

    FSB Sets Out Work Priorities for 2021

    In a recently published letter addressed to the G20 finance ministers and central bank governors, the FSB Chair Randal K. Quarles has set out the key FSB priorities for 2021.

    February 25, 2021 WebPage Regulatory News
    News

    EU Publishes Corrigendum to Revised Capital Requirements Regulation

    EU published, in the Official Journal of the European Union, a corrigendum to the revised Capital Requirements Regulation (CRR2 or Regulation 2019/876).

    February 25, 2021 WebPage Regulatory News
    News

    ESAs Issue Statement on Application of Sustainability Disclosures Rule

    ESAs published a joint supervisory statement on the effective and consistent application and on national supervision of the regulation on sustainability-related disclosures in the financial services sector (SFDR).

    February 25, 2021 WebPage Regulatory News
    News

    EC Consults on Crisis Management and Deposit Insurance Frameworks

    EC published a public consultation on the review of crisis management and deposit insurance frameworks in EU.

    February 25, 2021 WebPage Regulatory News
    News

    HKMA Enhances Loan Guarantee Scheme to Alleviate Pressure on SMEs

    HKMA announced that enhancements will be made to the Special 100% Loan Guarantee of the SME Financing Guarantee Scheme (SFGS) and the application period will be extended to December 31, 2021.

    February 24, 2021 WebPage Regulatory News
    News

    EBA Proposes Standards for Supervisory Cooperation Under IFD

    EBA launched consultations on the regulatory and implementing technical standards on cooperation and information exchange between competent authorities involved in prudential supervision of investment firms.

    February 24, 2021 WebPage Regulatory News
    News

    BoE Addresses Banks in Scope of First Resolvability Assessment

    BoE issued a letter to the CEOs of eight major UK banks that are in scope of the first Resolvability Assessment Framework (RAF) reporting and disclosure cycle.

    February 24, 2021 WebPage Regulatory News
    RESULTS 1 - 10 OF 6629