Daily Mirror (Northern Ireland)
Sunak eyes up digital currency
NEW TASKFORCE WILL EXPLORE ISSUE
THE Bank of England has moved a step closer to issuing digital banknotes as Chancellor Rishi Sunak announced a taskforce to explore the possibility.
The move comes amid a decline in the use of physical cash and growing interest in cryptocurrencies such as Bitcoin. A Central Bank Digital Currency (CBDC) would be one of the biggest milestones in the Bank of England’s 326-year history.
Experts have predicted we will have ‘e-pounds’ within two or three years but the Bank insisted any digital currency it issued would be “fundamentally different” to cryptocurrencies or cryptoassets.
It has previously warned that investors buying those “should be prepared to lose all their money”.
Currently the Bank issues banknotes, that can be used by households and businesses, and electronic money,
The Government is to examine 6
US giant Nvidia’s £30billion swoop on British microchip designer Arm on national security grounds. The move by Digital Secretary Oliver Dowden follows concerns by politicians and unions. used by banks and certain financial institutions. A CBDC “would allow everyone to make electronic payments in central bank money”, it said.
If it were to happen, £10 of CBDC would always be worth the same as a £10 note, it added. The Bank stressed it and the Government had not yet made a decision.
“Any CBDC would be introduced alongside – rather than replacing – cash and bank deposits,” it added.
China is a front-runner to launch a CBDC and last week the European Central Bank said it was studying an electronic form of cash, but that any launch was several years away.
It comes as the Government tries to make London a more attractive global financial centre in the wake of Brexit. Mr Sunak pledged an “ambitious programme of new initiatives”.
Engineering conglomerate Melrose Industries is back on the hunt for more takeovers after selling the bulk of its Nortek air conditioning business for £2.6billion. The deal with privately owned US corporation Madison Industries comes just five years since buying it for £2.2bn. Melrose will use the proceeds to pay down debt.