In the media space, the latest information about the cryptocurrencies in England appeared. The National Bank’s Chief Cashier, Sarah John, believes that the most important factor directly affecting the virtual currencies in her home country will be the decisive and immediate action of central banks in relation to the issue of crypto.
Moreover, she is not the first person to make a public statement on this subject. However, the issue of the creation of virtual currencies by central banks (CBDC) is still controversial and raises a lot of emotions.
Steps taken by the institution
To date, the Bank of England has not published any official letter allegedly confirming the rumours that the country’s bankers are trying to issue a cryptocurrencies . Nevertheless, the majority of market experts believe that developed countries, which are internationally important (including the United Kingdom), must take a look at the issue of digital currencies.
The main task of national central banks should be to counteract the emerging effects of monopolistic seizure of the virtual currency market by technological giants.
The national backyard
Last weekend, the Bank of England’s Chief Cashier, Sarah John, publicly stated that she fully supports this type of undertaking. Moreover, she tried to find arguments that would confirm the thesis she accepted. Sarah John claims that a vigorous entry by central banks could be fundamental in the whole matter. This move could stop the ubiquitous trend of monopolizing the virtual currency market by technological giants. But there is one catch. To be able to speak of the potential success of the whole plan, it must be implemented as soon as possible.
Otherwise, the actions of central banks will be doomed to failure in advance in confrontation with stock market wolves, such as Facebook. In “The Telegraph” Sarah John has spoken about this undertaking in this way. It is also worth mentioning that the Chief Cashier of the Bank of England, whose function is performed by John, is responsible for issuing banknotes in the Bank.
It is entirely appropriate that central banks are considering whether the public or private sector would be better placed to provide the public with a virtual currency in the future”, Sarah John in The Telegraph.
Getting ahead of the competition
It is also worth noting that this discussion was initiated by Facebook itself. About six months ago, the authorities of the social network announced that they intend to issue their own virtual currency called Libra. This move from Facebook caused a kind of storm in the media space. What’s more, it caught the attention of national governments, which seriously considered entering the crypto market in order not to fall behind the technological giants.
The relevant authorities even considered blocking the project to establish Libra, but this has not happened so far. What’s more, a new idea was born on the part of the authorities, which is to issue their own digital currency (CBDC). This is how Sarah John comments on the case:
The technology is developing at a dizzying pace, so central banks are very sensitive to the fact that they may risk giving full control over money management (private parties).
The voice of reason
Moreover, not only the Bank of England’s Chief Cashier is concerned about the emerging threat from the technology giants. The Financial Stability Board has also called on the authorities to step up their efforts to develop and implement their own crypto, as otherwise companies like Facebook will monopolise the monetary sector.
The Governor of the Bank of England, Mark Carney, is among the speakers on the inevitable challenges facing national banking institutions. In a sense, his opinion can be seen as a kind of voice of reason, not only because of his important function, but also a few months ago he was one of the moderate enthusiasts of the Libra issue, but as you can see, he changed his point of view.