Thank you for the invitation to speak. It is a pleasure to be here. Today, I will be sharing our latest thoughts on Central Bank Digital Currency (CBDC). I will discuss what we have learned so far and how we are preparing for the future. Additionally, I will outline the principles guiding our explorations and our approach to the significant debates surrounding CBDC.
When discussing CBDC, I want to emphasize two key points. Firstly, the Bank of England is highly interested in CBDC, but we have not yet made a decision on its necessity. Secondly, we recognize the importance of cash to many individuals, and we will continue to make it available for as long as it is desired.
For today’s discussion, I will primarily focus on a ‘retail’ CBDC designed for everyday transactions within the UK. However, there are also ‘wholesale’ versions of CBDC proposed for transactions between financial institutions. Furthermore, while today’s focus is on domestic use, CBDC could potentially have applications in cross-border payments.