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Bank of England to explore a potential Central Bank Digital Currency

bankofengland.co.uk

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Re: Bank of England to explore a potential Central Bank Digital Currency

#41

Post by veritascap »

KaiserPro wrote: post #30

I've not really understood the need for a "digital" pound, the pound is pretty digital already. I can already have an entirely digital bank account from at least three "challenger" banks. There are also now at least two business accounts that also entirely virtual. "Faster Payments" (customer bank transfers) are delivered in seconds. I can see a need for speeding up BACS, and reducing the price of CHAPS, but apart fr…

The reason for a CBDC are new features. Money that can be programmed to only be used in certain ways, with certain groups, or at certain times, e.g. expiring money. It’s more nudging power for our unelected technocrat dear leaders. Imagine the possibilities!

Re: Bank of England to explore a potential Central Bank Digital Currency

#42

Post by bitcoinmonger »

Nursie wrote: post #14
itsdsmurrell wrote: post #4

This is great... easier rails into hard money (crypto).

Just no. Hard money is not desirable. Whatever comes out of this "the country's money supply should be determined by some cryptobros" is not going to be the result.

Agreed. The money supply should be flexible to help alleviate the effects of inevitable financial crashes.

This of course devalues the savings of the average person when this happens, but it's the only way to recover from mistakes like the mortgage bubble.

Re: Bank of England to explore a potential Central Bank Digital Currency

#43

Post by the-dude »

StavrosK wrote: post #39
corobo wrote: post #22

Earlier quoted context omitted.

In fairness Bitcoin wasn't designed by committee and it's up there with CFCs in how much of a detriment it is to the environment

Bitcoin uses energy. Energy is a detriment to the environment, but it doesn't have to be. The problem isn't the energy usage, the problem is that we're bad at generating energy without killing the planet.

The planet will be fine. You are projecting.

Re: Bank of England to explore a potential Central Bank Digital Currency

#44

Post by ben30 »

I think the value here isn't for consumers. It's having a central ledger that all of the main financial institutions use. No need to a move a % of your treasury reserves into the central bank each night. As the treasury department of Barclays for example, the central bank of england can see your liquidity buffers in real time, intraday.

Re: Bank of England to explore a potential Central Bank Digital Currency

#45

Post by astoor »

NicoJuicy wrote: post #24
itsdsmurrell wrote: post #4

This is great... easier rails into hard money (crypto).

This just shows that blockchain is a good technology. But that bitcoin is just an implementation waiting to become obsolete.

> This just shows that blockchain is a good technology.

At no point does the original article mention blockchain, which actually improves its credibility given a Central Bank Digital Currency would not benefit from a public blockchain (as distinct from a permissioned distributed ledger).

Re: Bank of England to explore a potential Central Bank Digital Currency

#47

Post by NicoJuicy »

disruptalot wrote: post #35
NicoJuicy wrote: post #24

Earlier quoted context omitted.

This just shows that blockchain is a good technology. But that bitcoin is just an implementation waiting to become obsolete.

I've been hearing this for 10 years straight. Thus far the only successful examples of Blockchain technology have been based on digital currencies and Bitcoin has done nothing but continue it's success. On the other hand, there is not one example of "Blockchain technology" put to work on anything that needed it.

We use blockchain at work ( not by me).

It's not because you haven't seen it in public, that it isn't used.

Also: https://www.fnality.org/home which the bank of england ( mentioned in the article) is a member of to settle between banks.

I also wouldn't see bitcoin as a success. No one that i know of uses it in daily life ( except some being hyped by it and HODL'ing it)

Re: Bank of England to explore a potential Central Bank Digital Currency

#48

Post by mytailorisrich »

KaiserPro wrote: post #30

I've not really understood the need for a "digital" pound, the pound is pretty digital already. I can already have an entirely digital bank account from at least three "challenger" banks. There are also now at least two business accounts that also entirely virtual. "Faster Payments" (customer bank transfers) are delivered in seconds. I can see a need for speeding up BACS, and reducing the price of CHAPS, but apart fr…

Currency is not digital.

What they mean by "digital currency" is a for instance a purely digital bank note than you can hold and transfer to someone else (like for instance a crypto token). Clearly that's not how things work now.

Edit: See my further comment below as it looks like people don't quite understand what "digital currency" is.

Re: Bank of England to explore a potential Central Bank Digital Currency

#49

Post by KaiserPro »

bitcoinmonger wrote: post #40
KaiserPro wrote: post #30

I've not really understood the need for a "digital" pound, the pound is pretty digital already. I can already have an entirely digital bank account from at least three "challenger" banks. There are also now at least two business accounts that also entirely virtual. "Faster Payments" (customer bank transfers) are delivered in seconds. I can see a need for speeding up BACS, and reducing the price of CHAPS, but apart fr…

This will be good for anyone interested in using modern cryptocurrencies, whilst also allowing governments to control access to accounts and adjust the money supply if necessary. It's a win-win for everyone. Also the energy required to secure the ledger will be dramatically reduced. Proof of work can be replaced by physical security, which is more energy efficient. Anyone wanting to rewrite the ledger would need more…

> Proof of work can be replaced by physical security, which is more energy efficient.

I'm not sure you understand how banking works. The BoE already has a ledger, its just private[1] for a number of reason (the banks accounts are published, but not in real time, and not by individual account). All banks have ledgers, and sometimes they even marry up.

[1]well kind of.

Re: Bank of England to explore a potential Central Bank Digital Currency

#50

Post by NicoJuicy »

astoor wrote: post #45
NicoJuicy wrote: post #24

Earlier quoted context omitted.

This just shows that blockchain is a good technology. But that bitcoin is just an implementation waiting to become obsolete.

> This just shows that blockchain is a good technology. At no point does the original article mention blockchain, which actually improves its credibility given a Central Bank Digital Currency would not benefit from a public blockchain (as distinct from a permissioned distributed ledger).

Explore digital currencies is highly likely to be blockchain

> Meanwhile, the Bank of England also announced a new omnibus bank account, a special account at the central bank targeted at regulated payment systems. The new account is well-suited to Fnality, the blockchain-based payment system owned by 15 institutions.

And they ( bank of England) already have blockchain tech to settle between banks : https://www.fnality.org/home

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