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BoE’s Carney sees big challenges from central bank digital currency – Source Reuters Tech News

FILE PHOTO: Mark Carney, Governor of the Bank of England (BOE) attends a news conference at Bank Of England in London, Britain March 11, 2020. Peter Summers/Pool via REUTERS

LONDON (Reuters) – The Bank of England could face big challenges managing risks to financial and monetary stability if it launches its own digital currency, Governor Mark Carney said on Thursday.

“While CBDC (central bank digital currency) poses a number of opportunities, it could raise significant challenges for maintaining monetary and financial stability … and would need to be very carefully designed if it were to be introduced,” Carney said in the foreword to a BoE working paper.

The BoE has not decided whether to introduce its own digital currency as a complement to physical banknotes, he added.

Reporting by David Milliken; editing by Kate Holton

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