The U.K. government expressed concern about the declining use of cash in the country and is ready to recognize the need for a central bank digital currency (CBDC). The Bank of England (BoE) will soon publish a roadmap for the digital pound.
Officials from the Bank of England and His Majesty’s Treasury believe the country will need to have a CBDC by 2030. This is reported by The Telegraph, citing a government consultation document.
According to Jon Cunliffe, Deputy Governor for Financial Stability of the Bank of England, the BoE is preparing to present a roadmap for the digital pound next week. Andrew Bailey, Governor of the Bank of England, said that the regulator wasn’t developing the CBDC infrastructure at this stage but was only doing “preparatory work.”
Jeremy Hunt, His Majesty’s Chancellor of the Exchequer, explained that authorities were leaning toward the need for a new form of money as the digitalization of the economy led to an increasing reduction in the use of cash. The BoE reported that England saw its first tangible drop in cash use in 2020, a 35% decline. And the numbers have continued to decline since then.
Recall that the U.K. authorities are ambitious in their plans to turn the country into a crypto hub. Among the points of this plan is to create a regulatory framework for cryptocurrency companies in the United Kingdom and attract crypto startups to the country. For example, the HM Treasury is in the process of legalizing stablecoins, while the BoE is developing a legal framework for the crypto market.
According to the latest Recap survey, the U.K. government is heading in the right direction, as London topped the ranking of the most prepared cities for crypto businesses.
Researchers say there are over 800 different cryptocurrency companies operating in the capital of England, employing more than 2,000 specialized professionals. London surpasses even such major cryptocurrency hubs as Dubai, with about 750 crypto companies employing about 850 specialists, and Singapore, with nearly 800 crypto firms employing half as many specialists. However, it’s also worth noting the shortcomings of the U.K. legal framework, which makes it the largest “provider” of scam crypto companies.
Recap research shows that London has also become the world leader in the number of crypto forums and other events related to the industry in the city. For instance, the capital hosts an average of 57 such events per year. By the way, CP Media collects information about the most relevant upcoming crypto events, available in the Сrypto Events Calendar and monthly sets.
