The Bank of England issued a research, which discusses the possibility of central bank creating its own cryptocurrency.
The planned introduction of the crypto and stablecoin rules in July is part of the country’s efforts to become a global crypto hub.
Despite the benefits highlighted in the ongoing testing of CBDC concerning issuance, distribution, and privacy, the committee fears that the launch of a digital pound could incur additional costs.
Following the collapse of Terra Luna and FTX last year, the UK policymakers have committed to introducing a new regulatory regime for crypto assets and stablecoins to ensure sustainable and secure mainstream adoption.
The acquisition of a banking license in the UK could open up new revenue streams for Revolut, allowing the company to generate interest income at a time when interest rates are at multi-year highs.
The UK Chancellor of the Exchequer Jeremy Hunt is optimistic that inflation would ease.
The Bank of England has halted its 14 consecutive interest rate hikes, keeping rates at 5.25% due to moderating inflation. Despite this, the economy remains precarious.
Core inflation in August rose as the CPI showed price increases across several points, including energy, housing and airfares.
The recent decision by the Bank of England (BoE) to increase interest rates has further compounded the issue of declining home sales in the UK.
While the easing of headline inflation is welcome news for consumers, experts are paying closer attention to the underlying trends.
The English government and the Bank of England believe that a need for a CBDC is likely to arise in the future.