Bank of England’s central bank digital currency (CBDC) lead, Katie Fortune informed about the future benefits of CBDC and bitcoin coexistence. She said that many unknown benefits are yet to be known.
In recent months we have witnessed different opinions from different personalities on the possible usage of CBDCs and cryptocurrencies in the future. The Bank of England sees a mixed future ecosystem soon of various currencies. On 30 March, a panel that took place during the Citi Digital Money Symposium, the BoE central bank digital currency lead, provided clarity on the CBDC and other currency coexistence in the future.
Katie Fortune provided a detailed report on how CBDCs can act as a link between bitcoin and traditional finance like banks and stock brokers. Traditional finance works as centralized institutions while modern CBDCs operate as decentralized finances (DeFi). However, there are several obstacles in creating the bridge between traditional finances and decentralized finances like data thefts, fraud, and lack of policy associated with it.
In February 2023, the Bank of England launched consultation papers for the design of central bank digital currency. At that time BoE’s governor Andrew Bailey ensured that all privacy concerns and safety standards will be taken care of before the launch of the digital pound. In 2021, the then Chancellor and current prime minister of the United Kingdom Rishi Sunak named the CBDCs exploration project “Britcoin”.
Fortune also believes that the possibilities of using central bank digital currency in retail trade and e-commerce are immense. In her statement, she also added that currently, we have to focus on how they can provide the necessary infrastructure to smoothen the CBDC ecosystem.
In the Citi Digital Money Symposium, the main discussion mainly focused on the prospects of central bank digital currencies. Citi bank’s Future Finance Lead predicted that by the end of this decade, worth $5 trillion CBDCs will be in circulation.