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Bank of England and UK Parliament get ‘Bitcoin fixes this’ treatment

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An unknown person projected “Bitcoin fixes this” and other messages on the walls of the Bank of England, and the Parliament of the United Kingdom.

Thus, with the help of a laser projector, the crypto user expresses his dissatisfaction with the current monetary policy of the Bank of England. Due to the fact that the Bank of England has recently taken big steps towards the introduction of a central bank digital currency. However, the final decision on the release of CBDC has not yet been made.

CBDC development

The Bank of England, along with five other CB – the Bank of Canada, Japan, the European Central Bank, the Riksbank and the National Bank of Switzerland – are studying the CBDC. The group is supervised by the Bank for International Settlements (BIS).

A group of six central banks and BIS are evaluating CBDC use cases; their economic, functional and technical options for their implementation, including cross-border compatibility.

The Bank of England said CB must accelerate the development and issuance of digital currencies. In order not to lose the race with private companies. Perhaps the anonymous bitcoiner is unhappy with this, who knows?

The Bank of England attributed its interest in CBDC to “significant changes in money and payments” and an increase in the volume of currencies “privately issued”. At the same time, the CB once again pointed to the risks of digital currencies for commercial financial institutions. “This may affect the amount of loans provided by banks to the wider economy, the implementation of monetary policy and the support of financial stability by the Bank of England”.

The department plans to tie the cost of CBDC to pounds sterling. In other words, ensure the coexistence and circulation of fiat and digital currency.

However, the development of this financial instrument is still under discussion.

A report earlier this month revealed that HMT, and the Bank of England are collaborating on research related to CBDC. CBDCs have been a hot topic over the past year. So, the world’s CB are making decisions with caution to avoid causing public and government resentment.

The Bank of England committed to developing the CBDC idea in the country and is announcing the recruitment of new employees. Thus, 7 new vacancies related to the digital currency sector were posted. Job listings have recently appeared on Boe’s job posting website.

The exact timing of the appearance of the national digital currency is not yet known. However, we see that England has begun to move towards the development of CBDC.

Anti-cryptocurrency position of the Bank of England

The plans to create a CBDC don’t in any way affect the skepticism of the Bank of England regarding Bitcoin. So, its Chairman noted that at the moment Bitcoin doesn’t have any basic value, but supported exclusively by speculation.

Conclusion

The attitude of the world’s CB to digital money has gone from rejection of the idea itself to pilot projects of a national digital currency in just the past few years.

By mid-2020, at least six countries were experimenting with digital national currency, including England, China, Sweden. They was one of the first to start this work.

The coronavirus epidemic has greatly increased the popularity of online payments and contactless payments. And increased consumer demand for fast, low-cost and reliable money transactions. This was another impetus that accelerated the development of CBDC as a way to reduce the operational risks of payment systems.

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