Bank of England Economist Proposes National Digital Currency
The Bank of England's top economist has suggested that a digital currency based on bitcoin could alleviate monetary policy problems. Andrew Haldane, the UK central bank's chief economist and executive director for monetary analysis and statistics, spoke at the Portadown Chamber of Commerce in Northern Ireland on 18th September. During his speech, Haldane offered several ways in which central bankers can conduct monetary policy during a period when interest rates are close to or below zero. Haldane suggested that central bankers consider making measures like quantitative easing a permanent....
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The Bank of England is playing a very strange game right now. The institution is keen on issuing its own national virtual currency. However, they are still no fan of Bitcoin, as they feel the currency is “peppered with flaws.” Such a statement is not entirely surprising, though, as no banks have a vested interest in embracing a digital currency they cannot control. Interestingly enough, a representative of the Bank of England has announced the UK will not adopt a central digital currency anytime soon. While Bitcoin is not centralized by any means, this could indicate they will not go ahead....
In a talk given at the Portadown Chamber of Commerce in Northern Ireland on September 18, Andrew G Haldane, Chief Economist at the Bank of England (BoE), has hinted at the possibility that the U. K. government might issue a digital currency. Though the disclaimer "The views are not necessarily those of the Bank of England or the Monetary Policy Committee" ensures plausible deniability, Haldane's talk seems to indicate that the BoE is at least seriously considering the possibility. Haldane is chief economist at the BoE and executive director of monetary analysis and statistics. Listed by....
The Bank of England has proposed the introduction of a central bank backed digital currency alongside fiat banknotes. The idea of creating a central bank backed digital currency is not a new thing. The digital currency community and central banks of various nations have floated this idea at one point or another. While most nations are yet to act upon it, the Bank of England is already doing the groundwork for such an implementation. A ‘Staff Working Paper‘ published this month as part of the research commissioned by the Bank of England reports that introduction of a Bank of England backed....
Deputy Governor of the Bank of England Ben Broadbent has spoken out on the implications of a central bank digital currency (CBDC) for the financial system as we know it. In Broadbent’s lecture at the London School of Economics on March 2, he focused on what a central bank digital currency could look like, and potential economic implications of introducing one. Central Bank Digital Currency A CBDC could be issued by a central bank to widen access to the central bank’s balance sheet. Liabilities on the central bank’s balance sheet include banknotes and commercial bank reserves, and are the....
Andy Haldane, the Chief Economist and the Executive Director of Monetary Analysis and Statistics at the Bank of England recently proposed that the UK should switch from a fiat to a digital currency based economy to support the UK’s economic growth. “The balance of risks to UK growth, and to UK inflation at the two-year horizon, is skewed squarely and significantly to the downside,” Haldane told Express U.K. “There could be a need to loosen rather than tighten the monetary reins as a next step to support UK growth and return inflation to target.” He added: “What I think is now reasonably....