Tuesday, October 12

Bank of England Manager: CBDC Will Be The Safest Type Of Money

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Bank of England fintech director Tom Mutton spoke about CBDCs at FStech’s “Future of Fintech” conference on June 17. In his speech, Mutton evaluated the responses to the Bank of England’s (BoE) discussion paper on CBDCs.

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Mutton stated that a CBDC must go through many studies before it can be released. Still, Mutton has a more positive outlook on a CBDC than Bank of England’s previous statements. Mutton believes CBDC will be the safest type of money:

“As a liability of the Bank of England, CBDC would be the safest form of money available.”

The executive also pitted CBDC against other forms of money, such as stablecoins:

“The ability to convert ‘private’ money, such as bank deposits, into ‘public’ money on demand, issued in cash by the central bank, is a foundation of that trust.”

Mutton also spoke about the responses to the CBDC document issued by the BoE. While 39% of these answers came from technology and fintech companies, only 5% came from financial institutions. According to Mutton, the answers to the document are very suitable for the cautious approach.

“There is almost universal agreement that regardless of the respondent’s position, the pros and cons of whether a CBDC is needed should be in-depth, broad participation is needed when gathering evidence, and open consultation is necessary before reaching any conclusions.”

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