--- title: "BofE Paper: Central Bank Digital Currency" description: Responses to the Bank of England discussion paper are due by 12 June 2020. image: https://articles.marketsmedia.com/hubfs/Imported_Blog_Media/bank-england-endorses-sefs-ahead-european-clearing-launch-May-12-2022-09-31-23-83-AM.jpg --- ![websites-group](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/new-MMG-01.svg) [![](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/dropdown-new-marketsmedia-logo.svg)](https://www.marketsmedia.com/) [![](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/dropdown-menu-traders-redlogo.svg)](https://www.tradersmagazine.com/) [![](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/dropdown-menu-bestexe-logo.svg)](https://www.bestexecution.net/) [![](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/dropdown-menu-fidesk-logo.svg)](https://www.fixglobal.com/) [![](https://articles.marketsmedia.com/hubfs/raw_assets/public/MarketsMedia_August2021/images/dropdown-fixglobal-new-logo.svg)](https://www.fixglobal.com/) - [*Facebook*](https://www.facebook.com/MarketsMedia/) - [*Twitter*](https://twitter.com/marketsmedia) - [*Linkedin*](https://www.linkedin.com/company/markets-media-llc) - [Newsletter](https://articles.marketsmedia.com/bofe-paper-central-bank-digital-currency#popup-newsletter) #### Want the latest news on securities markets -- FREE? 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A CBDC would be an innovation in both the form of money provided to the public, and the infrastructure on which payments can be made. If a CBDC were to be introduced in the UK, it would be denominated in pounds sterling, just like banknotes, so £10 of CBDC would always be worth the same as a £10 note. Any CBDC would be introduced alongside – rather than replacing – cash and bank deposits. A CBDC would not be a cryptoasset or cryptocurrency, nor necessarily based on the technology that powers them (Distributed Ledger Technology). ## Money and payments are changing We’re interested in CBDC because this is a period of significant change in money and payments. ## Opportunities for the Bank’s objectives CBDC could present a number of opportunities for the way that the Bank of England achieves its objectives of maintaining monetary and financial stability. ## Designing a CBDC The discussion paper outlines an illustrative model of CBDC designed to store value and enable UK payments by households and businesses. ## What technology could CBDC use? Choices around the technology used for CBDC are important as they would have a significant impact on the extent to which CBDC meets our overall objectives. ## Future engagement We welcome your views. We want to begin a dialogue on the appropriate design of CBDC and an evaluation of whether the benefits of CBDC outweigh the risks. Given the wide ranging implications of CBDC for the Bank’s objectives and the wider economy, any decision to introduce a CBDC would involve Her Majesty’s Government, with input from relevant regulatory authorities, Parliament and society more generally. We invite feedback and ideas from the public, technology providers, the payments industry, financial institutions, academics and other central banks and public authorities, and have outlined our key questions for further research at the end of this paper. See questions in [Chapter 7](https://www.bankofengland.co.uk/-/media/boe/files/paper/2020/central-bank-digital-currency-opportunities-challenges-and-design.pdf?la=en&hash=A71920A2FFB6511E43F787019C549262049CC7A8#page=49). Send your responses in to [CBDC@bankofengland.co.uk](mailto:CBDC@bankofengland.co.uk) by 12 June 2020. Source: Bank of England [Share](https://www.facebook.com/share.php?u=https://articles.marketsmedia.com/bofe-paper-central-bank-digital-currency) [Tweet](https://twitter.com/intent/tweet?text=US+ETFs+Have+Record+Net+Inflows&url=https://articles.marketsmedia.com/bofe-paper-central-bank-digital-currency) [Share](https://www.linkedin.com/cws/share?url=https://articles.marketsmedia.com/bofe-paper-central-bank-digital-currency) ![email](https://articles.marketsmedia.com/hubfs/Markets%20Media/email.svg) ### NEWSLETTER SIGN UP And receive exclusive articles on securities markets ### Related articles 1. 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