The International Currency Association (ICA), representing the global currency sector, has confirmed its submission to the Bank of England’s consultation on its discussion paper on new forms of digital money.
The consultation was launched in response to the BoE’s discussion paper published in June 2021, which presented the Bank’s emerging thoughts on new forms of digital money, including both systemic stablecoins and a UK CBDC.
ICA’s contribution to the BoE consultation elaborates specifically on the characteristics of physical cash that a digital currency should have in order to truly play the role of ‘digital cash,’ as well as on the conditions that need to be met for ‘physical cash’ and a public digital currency to co-exist.
ICA Director General Jutta Buyse comments, “The ICA has consistently reiterated the importance of cash as a public good for citizens. In order for physical cash to continue to play its role as a public good, a CBDC must therefore truly be a digital expression of cash – accessible universally and at no cost, operational offline, and with maximum safeguards in place for both privacy and security.”
Buyse continues, “The ICA, through its global membership, is uniquely placed to draw on the knowledge and insights of its members to provide input addressing the unique and complex regulatory, legal, and technological challenges that will need to be overcome in the development of a digital pound. This is a pivotal moment for the ICA to be contributing to these discussions, and we hope it will ensure that Britain’s economy of tomorrow, should a CBDC be introduced, is one in which a CBDC exists in harmony with cash. We salute the Bank of England for providing the occasion for such input to be given and we look forward to facilitating ongoing dialogue between our members and the Bank of England in future consultations.”
The ICA had contributed earlier this year to the European Central Bank’s consultation on a digital euro and stands ready to contribute with expertise to discussions in other jurisdictions.
ICA’s responses to the BoE consultation on the CBDC are available to view here.
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Contact: Chloe Menhinick, Director of Communication ICA – chloe.menhinck@currencyassociation.org
| +31 6 287 294 79
About the International Currency Association: The International Currency Association exists to create a coherent voice for the currency industry – covering design, production, manufacturing, and distribution. We are the first industry body of its kind with a membership made up of businesses that span the sector. https://currencyassociation.org/
