LONDON (Reuters) – The Bank of England must tread carefully to avoid financial stability dangers if it creates a digital equivalent to its existing banknotes, Governor Mark Carney said on Thursday.
FILE PHOTO: Bank of England Governor Mark Carney reveals the design for the new £20 note at the Turner Contemporary gallery in Margate, Britain, October 10, 2019. Leon Neal/Pool via REUTERS
Cash usage is falling in Britain, making shoppers and businesses more reliant on electronic money held with banks and payment companies rather than banknotes issued by the BoE.
The BoE said it was seeking the public’s views on how it might design a digital currency of its own to operate alongside physical cash — though a decision on whether to go ahead would need government approval.
“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…
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