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

    APRA Announces Deferral of Capital Reform Implementation

    APRA announced that it is deferring the scheduled implementation of Basel III reforms in Australia by one year.

    March 30, 2020 WebPage Regulatory News
    News

    IFRS Publishes Statement on Its Work During the COVID-19 Crisis

    IFRS, in its statement, emphasized that it shares global concerns about the impact of COVID–19 and is supporting its stakeholders by reconsidering timelines of its meetings and publications, providing information on the application of IFRS 9 on financial instruments, and offering calendar updates on ongoing activities.

    March 27, 2020 WebPage Regulatory News
    News

    US Agencies Announce Changes to SA-CCR and CECL Rules Due to COVID-19

    In light of the recent disruptions in economic conditions due to the COVID-19 outbreak, US Agencies (FDIC, FED, and OCC) announced two actions to allow banking organizations to continue lending to households and businesses.

    March 27, 2020 WebPage Regulatory News
    News

    IAIS Adjusts Work Program to Address Impact of COVID-19 on Insurers

    Considering the impact of COVID-19 outbreak, IAIS announced initial adjustments to its work program to provide operational relief to its member supervisors, insurers, and other stakeholders.

    March 27, 2020 WebPage Regulatory News
    News

    OSFI Announces Regulatory Adjustments to Support COVID-19 Efforts

    OSFI published three targeted industry letters that announce a series of regulatory adjustments to support the financial and operational resilience of federally regulated banks, insurers, and private pension plans in the light of COVID-19.

    March 27, 2020 WebPage Regulatory News
    News

    UK Regulators Announce Measures to Address Impact of COVID-19

    UK Regulatory Authorities published statements and guidance addressed to financial entities on dealing with the impact of the coronavirus (COVID-19) outbreak.

    March 26, 2020 WebPage Regulatory News
    News

    ISDA and Industry Request Delay in Timeline for Initial Margin Rules

    Considering the challenges posed by the COVID-19 pandemic, ISDA submitted a letter on behalf of 21 industry associations and their members requesting BCBS, IOSCO, and global regulators to suspend the current timeline for the initial margin phase-in.

    March 26, 2020 WebPage Regulatory News
    News

    FCA, FRC, and PRA Issue Joint Statement to Address Impact of COVID-19

    In response to the COVID-19 outbreak, FCA, the Financial Reporting Council (FRC), and PRA have announced a series of actions and made statements to support the continued functioning of capital markets in the UK.

    March 26, 2020 WebPage Regulatory News
    News

    EC Rule Corrects Regulation Supplementing Solvency II Directive

    EC published the EU Delegated Regulation 2020/442, which corrects the EU Delegated Regulation 2015/35 that supplements Solvency II Directive (2009/138/EC).

    March 26, 2020 WebPage Regulatory News
    News

    FED and FFIEC Offer Reporting Relief to Institutions Due to COVID-19

    FED and FFIEC announced regulatory reporting relief to financial institutions due to disruptions caused by the COVID-19.

    March 26, 2020 WebPage Regulatory News
    RESULTS 1 - 10 OF 4900