Membership of CBDC and Treasury forum announced by Bank of England


The Bank of England and the
Treasury have announced the membership of the CBDC and Treasury forums.
Representatives from ASOS, Spotify, and PayPal will be joining the forums,
which will discuss the UK's central bank digital currency.
They announced the formation of
these organizations and the CBDC Taskforce on April 2021, which coordinates the
explorations
into a potential digital pound.
The Technology Forum held its first
meeting in late September. Meeting agendas and minutes will be released regularly,
according to the Bank.
CBDCs are digital equivalents of
fiat currencies backed by a central bank. Countries all across the world are
now exploring the advantages of developing them.
As the announced by Bank of England in April, any UK cryptocurrency would be a new type of
digital money. CBDCs are a new kind of central bank currency that could
potentially benefit economies in a way similar to how stimulus checks, emergency
loans, and other types of monetary policies do.
The Technology Forum brings
together feedback on all areas of CBDC technology from a wide range of industry
experts. Edwin Aoki, PayPal’s CTO for blockchain, cryptocurrency, and digital currencies, executives from Monzo, IBM, and Spotify, as well as a UCL academic
and a World Economic Forum policymaker, are among the members of the CBDC
Engagement Forum and CBDC Technology Forum.
The event will assist the bank
in better understanding the technological problems associated with creating,
implementing, and operating a CBDC.
In June, the Bank for
International Settlements (BIS) outlined its recommended approach to
fundamental elements of CBDC design, stating that retail CBDCs are available in
two variants.
BIS prefers digitally identified account-based systems, an account-based design that confirms users’ identities as “rooted” in a digital ID system. The other variant is a cash-like design that provides for token-based access and payment anonymity.

Pavan A
CBW - External Analyst
INDIA