Bank of England Consultation On Digital Money: ICA Contributes On Key Characteristics for Coexistence with Cash
The International Currency Association (ICA), representing the global currency sector, has confirmed its submission to the Bank of England’s consultation on its discussion on 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, which include both systemic stablecoins and a UK CBDC.
ICAs contribution to the BoE consultation elaborates specifically on the characteristics of physical cash that a digital currency should have in order to be able to truly play the role of ‘digital cash’ as well as on the conditions which 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.
ICAs responses to the BoE consultation on the CBDC are available to view here.
Contact: Chloe Menhinick, Director of Communication ICA – [email protected] | +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/