They emphasised that, while a CBDC would be a new form of money, it would exist alongside cash and bank deposits, rather than replacing them. Despite that, it didn’t stop Rishi from tweeting this:
The announcement is rather interesting given how the BoE’s Governor Andrew Bailey has previously criticised bitcoin for being an unstable store of value and an inefficient way to make transactions. Meanwhile, England is far from the only country that is exploring digital currency as when it comes to CBDC, China is seen to be ahead of the curve.
Its central bank has already launched pilot projects across the country which allow people to test digital yuan. In fact, authorities are even working on allowing foreign athletes and visitors to try the digital currency during the upcoming Beijing Winter Olympics in 2022, according to CNBC.