Treasury Committee Hearings
The UK's Treasury Committee recently heard from the BoE's deputy governor, Jon Cunliffe, on how the central bank is designing a digital pound in response to advancements in the crypto-asset industry.
Benefits of Digital Pound Technology
Cunliffe discussed the technology behind cryptocurrencies such as bitcoin and Ethereum and how they offer a prospect for deeper integration of the transfer of value and settlement compared to current electronic transfer systems. He also stated that the Bank of England must be ready to embrace new forms of payment systems that may emerge.
Why the UK Needs a Digital Pound
When questioned by MPs on the need for a digital pound, Cunliffe explained that it could benefit both the economy and society. He used the example of the iPhone, which has millions of apps despite launching with only 15, to show the potential for innovation in the payment and transaction space with a digital pound.
Cunliffe concluded by saying that the goal of a digital pound is to "open up a new frontier for people to improve payments and how money is used and in how we