The Bank of England is considering the issuance of a central bank digital currency — or CBDC — according to its governor, Andrew Bailey.
Bloomberg reports that during a student webinar, the head of the Bank of England acknowledged that they are looking into the possibility of issuing a digital currency:
“We are looking at the question of, should we create a Bank of England digital currency. We’ll go on looking at it, as it does have huge implications on the nature of payments and society. I think in a few years time, we will be heading toward some sort of digital currency,” he added.”
England could realize such an undertaking relatively soon, compared with other European nations. Following Brexit, the country does not have to deal with European Union bureaucracy, nor is it a part of the Eurozone, giving it a certain amount of flexibility in its monetary policy and development.
If the U.K. decides to develop a CBDC, it could provide the British pound with some advantage over major rival currencies like the U.S. dollar and the euro.