R3 Comments On HM Treasury And Bank Of England Plans For A Digital Pound

HM Treasury and the Bank of England are consulting on a potential digital pound, or central bank digital currency (CBDC).

Chris Ford, Head of Government Affairs EMEA at enterprise blockchain firm R3, commented on what this means for CBDC development and the UK government’s broader fintech strategy. R3’s DLT platform, Corda, is being used by digital currency initiatives around the world, such as the National Bank of Kazakhstan’s Digital Tenge pilot.

“The Treasury’s plan to investigate the design of a digital pound is a significant moment for our cutting edge fintech sector and demonstrates the UK government’s serious intent about putting technology at the heart of our financial services industry. Regulated CBDC, built on distributed ledger technology, can enhance efficiency across our financial market infrastructure and solve real problems that have held us back for decades.

“Following last week’s proposals to regulate crypto assets, it is clear that the government sees DLT as a core pillar through which it can drive financial innovation. Amidst rising competition from Europe and elsewhere, the application of blockchain and related technologies will be key in ensuring the UK retains its status as a global hub for financial services.”