Amazon, PayPal, Visa Core Members Appointed to Assist the BoE in the Development of the CBDC in the UK

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Representatives from Spotify, PayPal, Asos, and Visa, and Amazon have been selected by the Bank of England as stakeholders in two advisory committees looking into the possibility of a CBDC in the UK (Central Bank Digital Currency).

The Bank of England named the participants of the technology and engagement forums on September 29.

The Bank of England (BoE) will benefit from the technology forum by better understanding the technical issues of building, running, and implementing a CBDC.

James Whittle, director of standards and architecture for PayPal; Mark Shaw, director of global payments strategy for Spotify; Simon Brayshaw, head of technology for online fashion retailer Asos; David MacKeith, principal technology advisor at Amazon Web Services; and Edwin Aoki, PayPal’s chief technology officer, are among the 26 members of the technology forum.

On the other hand, the engagement forum will aid the BoE in comprehending the realities of creating, implementing, and managing a CBDC.

The engagement forum includes representatives from Visa, Standard Chartered, Morgan Stanley, Mastercard, and HSBC. Anne Boden, founder and CEO of digital bank Starling, and Christian Catalini, the Facebook-backed Diem Association head economist.

The engagement forum will host its inaugural meeting later this year, while the technology forum will hold its first meeting earlier this month.

Central banks are leading CBDC.

The Bank of England announced the creation of two forums to study the possibility of a CBDC in the United Kingdom in April.

During that time, the BoE stated that the central bank and the government had not yet decided whether to launch a CBDC and planned to use the task force to examine the practicalities. The BoE also clarified that a CBDC would not replace cash and bank deposits but exist alongside them.

Despite marked progress in countries like the Bahamas, Jamaica, Sweden, and China, the announcement by the BoE’s approach and status to develop a framework for a digital fiat currency is still at an earlier stage.

During that time, the Bank of England claimed that the central bank and the government had not yet determined whether or not to launch a CBDC, and that the task force would be used to look into the details. The Bank of England further stressed that a CBDC would exist alongside cash and bank deposits, not in substitute of them.

Despite significant progress in nations such as the Bahamas, Jamaica, Sweden, and China, the Bank of England’s declaration of its strategy and position to build a framework for a digital fiat currency is still in its infancy.

The Bank of England highlighted the possible benefits of a CBDC in July, including better cross-border and domestic payments, financial inclusion, and financial stability.

The new declaration indicates that the BoE is taking CBDC research more seriously.

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