One of the benefits, as well as the legacies of blockchain and cryptocurrency, is that they have created a system of payments that is fast, privacy-focused and borderless for consumers. As cryptocurrency and blockchain increase in use, the seamless sending of funds, particularly across borders, has become more the norm. The benefit of this for consumers is that it keeps traditional financial institutions on their toes with many of them realizing that they have to compete with these new payment platforms. This can be seen in many countries choosing to develop their own digital currency and blockchain-based payment systems as it is considered the financial structure of the future.
According to February 22, 2020 reports, Bank of England (BoE) chief cashier Sarah John has expressed views that suggest that the Bank of England should look into creating their own digital currency as well as a blockchain-based payment system in response to the moves made by several firms in the private sector.
Crypto Coming Soon
John reiterated her point by stating that the central bank should look into digital currencies as a potential option moving forward. This is due to the great strides that private firms are making with the release of stablecoins and she warns that central banks might find themselves having to play catch-up to these private firms if they do not act fast.
“It is absolutely right that central banks think about whether a public sector or private sector would be best to provide a digital currency going forward,” she said.
John is not the only one echoing the sentiment as just a few days ago, Financial Stability Board (FSB) Chair Randal Quarles sent out an open letter to leaders in the G-20 urging them to accelerate their development of digital currencies. His argument for this is that the rapid progress of cryptocurrency is one that cannot be ignored anymore.
“As this sector grows and evolves, there may be new vulnerabilities that need assessment. The FSB is forming a group to consider what work is appropriate and whether to reorganize existing work on non-bank financial intermediation,” he said.