The Bank of England is a member of a cryptocurrency research group that has had obvious results in Sweden and Japan.
As part of a plan for prevention and obtaining valuable information, Sarah John, who is chief cashier of the Central Bank of England (BoE), states that it is vitally important that the Central Banks of the world learn all about blockchain technology and cryptocurrencies. This would make it possible to achieve greater balance and control among the monetary flow of private entities that issue and manage crypto assets.
The employee of the BoE considers that there is no need to stop paying attention to cryptocurrencies, so she suggests to the other Central Banks that they develop research programs for this new technology, since it could determine the new payment systems in the future. She also clarified that if this becomes established, it would be important to have crucial data to form a correct and adjusted regulation for these assets.
In a recent interview with the employee, John’s determination was known to keep up with this new way of managing assets. “The Bank of England must consider its position on technology to ensure that the United Kingdom has a wide range of payments that can be used with confidence”, she said.
John even dared to show the idea of a cryptocurrency issued and managed by the bank as a regular circulation asset for its territory. “It is right that the central bank thinks which of the sectors, public or private, would be the most suitable for issuing a cryptocurrency in the future”.
In her role as chief cashier of the BoE, John believes that central banks must have some management of the digital currencies they issue and that, as private companies manage their cryptocurrencies. This means that the regulatory financial entity of the country should do so.
However to date, the Central Bank of England does not consider issuing any cryptocurrency that is part of its administration, but it has made significant research advances in this area.
Last January, this important institution was part of the study group that focused on giving its conclusions on the use of Central Bank Digital Currencies (CBDC). Its work showed part of the need to occupy media that are being occupied by private sectors and that must be regulated or at least, the institution must know more about them.
A clear example of results on CBDC research conducted Sweden’s central bank, Riksbank, to announce the development and initiation of e-krona tests, a digital currency that will be in charge of the institution and that could be ready for 2021.
In the same way, it was known that authorities of the Central Bank of Japan have met on several occasions with members of the Financial Services Agency (FSA) and the Ministry of Finance. They intend is to assess the possible financial impact of issuing a digital currency as well as of the incorporation of a new asset to its economy.
In this aspect, it was determined that Haruhiko Kuroda, the highest representative of the Central Bank of Japan, is working on developing all the legal and technical section that is vital so that, if necessary, they can issue a digital currency that serves the institution.
By María Rodríguez