UK to hold formal consultation on possible central bank digital currency
November 9, 2021, 3:58 pm

UK to hold formal consultation on possible central bank digital currency

UK-London-Banking district-Pixabay

The Investing reported according to Reuters, the Bank of England and Britain's finance ministry said on Tuesday that they would hold a formal consultation next year on whether to move forward on a possible central bank digital currency (CBDC) that would take years to introduce.

Central banks across the world are studying digital versions of their currencies to avoid leaving digital payments to the private sector as the decline of cash has accelerated in some cases due to the COVID-19 pandemic.

The BoE said in a statement: "No decision has been made on whether to introduce a CBDC in the UK, which would be a major national infrastructure project."

It added: "The earliest date for launch of a UK CBDC would be in the second half of the decade."

The consultation paper will set out an assessment from the ministry and BoE of the case for a CBDC before a decision on whether to proceed.

The document said: "A technical specification would follow the consultation explaining the proposed conceptual architecture for any CBDC. This could involve in-depth testing of the optimal design for, and feasibility of, a UK CBDC."

Financial services minister John Glen said a retail CBDC would be used by people and businesses for their everyday payments needs and helping Britain stay at the forefront of innovation and technology in the financial sector.

The European Central Bank in July took a first step towards launching a digital version of the euro, kicking off a 24-month investigation phase to be followed by three years of implementation.

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Work on a digital euro accelerated after Facebook (NASDAQ:FB) unveiled plans to create its own currency in 2019, a potential threat to central banks' core business.

While China has been at the forefront of CBDC moves, the U.S. Federal Reserve has been more sceptical.

Some central banks have warned that widespread use of CBDCs could hollow out commercial banks, depriving them of a cheap and stable source of funding like retail deposits.

Source: investing

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Aimed at secondary school students, the event brought together a distinguished group of academic professionals and technology experts to mentor and inspire young participants.
More than 100 high school students from across the Kingdom of Bahrain took part in the hackathon, which featured an intensive programme of training workshops and hands-on sessions. These activities were tailored to enhance participants’ critical thinking, collaborative problem-solving, and team-building capabilities, while also encouraging the development of practical and sustainable solutions to contemporary challenges using modern technological tools.
BENEFIT’s Chief Executive Mr. Abdulwahed AlJanahi, commented: “Our support for this educational hackathon reflects our long-term strategic vision to nurture the talents of emerging national youth and empower the next generation of accomplished female leaders in technology. By fostering creativity and innovation, we aim to contribute meaningfully to Bahrain’s comprehensive development goals and align with the aspirations outlined in the Kingdom’s Vision 2030—an ambition in which BENEFIT plays a central role.”
Professor Riyadh Yousif Hamzah, President of the Royal University for Women, commented: “This initiative reflects our commitment to advancing women in STEM fields. We're cultivating a generation of creative, solution-driven female leaders who will drive national development. Our partnership with BENEFIT exemplifies the powerful synergy between academia and private sector in supporting educational innovation.”
Hanan Abdulla Hasan, Senior Manager, PR & Communication at BENEFIT, said: “We are honoured to collaborate with RUW in supporting this remarkable technology-focused event. It highlights our commitment to social responsibility, and our ongoing efforts to enhance the digital and innovation capabilities of young Bahraini women and foster their ability to harness technological tools in the service of a smarter, more sustainable future.”
For his part, Dr. Humam ElAgha, Acting Dean of the College of Engineering and Technology at the University, said: “BuildHer CityHack 2025 embodies our hands-on approach to education. By tackling real-world problems through creative thinking and sustainable solutions, we're preparing women to thrive in the knowledge economy – a cornerstone of the University's vision.”