The Bank of England is reportedly assembling a team of up to 30 professionals to work on the development of a central bank digital currency (CBDC), according to the Sunday Times. The recruitment drive comes after the UK central bank and finance ministry announced plans to conduct further research and development on a digital version of the pound sterling earlier this year. The public was also invited to provide their thoughts on the project.
The Bank of England has been cautious about referring to the potential currency as “Britcoin,” a term coined by the media. The bank has yet to make a decision on whether distributed ledger technology will be used in the creation of a digital pound.
However, recent job postings on the bank’s careers page indicate that the institution is actively seeking a Digital Pound Security Architect and a Digital Pound Solutions Architect, both of which offer salaries of up to £80,000 ($99,000). In addition, the Treasury advertised for a Head of Central Bank Digital Currency in January.
Bank of England on CBDC
According to the Sunday Times, the creation of a team comprising up to 30 professionals demonstrates the Bank of England’s seriousness about pursuing the development of a digital pound. Ian Taylor, a board adviser for the trade association CryptoUK, commented that “a team of 30 seems like quite a significant resource to focus on the digital pound. It shows the impact it would have, and that the Bank is serious about it.”
CBDCs are digital versions of traditional fiat currencies that are issued and backed by central banks. They are designed to offer several benefits over cash and traditional bank deposits, such as faster transactions, lower costs, and increased security. CBDCs can also potentially facilitate the implementation of monetary policy, as central banks can directly control the supply and distribution of digital currency.
Other countries looking into the idea of establishing their own CBDCs
Several countries are currently exploring the possibility of launching their own CBDCs. China has been leading the way with its digital yuan, which is currently being trialed in several cities. The European Central Bank has also been actively researching and experimenting with CBDCs. The Bank of England is not alone in exploring the potential benefits of a digital currency, and the creation of a dedicated team of professionals highlights the increasing importance and urgency of such developments.
