UK Parliament’s Treasury Committee questions Bank of England on potential risks of creating a ‘Britcoin’ CBDC

“UK Parliament Questions Bank of England on ‘Britcoin’ CBDC, Citing Privacy Concerns”

JUST IN: 🇬🇧 UK Parliament’s Treasury Committee questions the Bank of England on creating a “Britcoin” CBDC, advising caution and risk mitigation due to potential abuse of private information 👀 pic.twitter.com/hYYPbqVdqd

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UK Parliament’s Treasury Committee Raises Concerns Over Bank of England’s “Britcoin” CBDC

The UK Parliament’s Treasury Committee has recently questioned the Bank of England regarding its plans to create a central bank digital currency (CBDC), dubbed “Britcoin.” The committee has advised caution and risk mitigation in order to prevent potential abuse of private information.

The concept of a CBDC has gained significant attention in recent years, with several countries exploring the possibility of issuing their own digital currencies. The Bank of England has joined this global trend and has been studying the feasibility of launching a digital version of the pound sterling.

During the questioning session, the Treasury Committee expressed concerns about the potential risks associated with a CBDC, particularly in terms of privacy and data protection. Members of the committee emphasized the importance of implementing robust safeguards to prevent the abuse of private information. They also raised concerns about the potential impact on financial stability and the wider economy.

The Bank of England, represented by Governor Andrew Bailey, assured the committee that privacy and data protection would be a top priority in the development of Britcoin. Bailey acknowledged the importance of striking the right balance between privacy and preventing illicit activities such as money laundering and terrorism financing. He also highlighted the need for collaboration with other regulatory bodies to ensure effective oversight and supervision of the CBDC.

The committee further inquired about the potential impact of a CBDC on the traditional banking system. While acknowledging that the introduction of a digital currency could disrupt the banking sector, Bailey emphasized that the Bank of England does not intend to replace commercial banks but rather to complement their services. He stated that the central bank’s primary objective is to ensure the stability and efficiency of the monetary system.

The discussion also touched upon the potential benefits of a CBDC, such as financial inclusion and reduced transaction costs. Bailey highlighted that a digital currency could provide a secure and accessible means of payment for individuals who are currently underserved by the traditional banking system. Additionally, the utilization of a CBDC could simplify cross-border transactions and potentially reduce reliance on traditional intermediaries.

As the debate around CBDCs continues to evolve, the Treasury Committee’s questioning of the Bank of England underscores the importance of thorough consideration and risk assessment. The potential benefits of a digital currency must be weighed against the potential risks, particularly in terms of privacy and financial stability. The Bank of England’s commitment to addressing these concerns and collaborating with regulatory bodies is essential in shaping the future of the UK’s financial landscape..

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@BitcoinNewsCom said JUST IN: 🇬🇧 UK Parliament's Treasury Committee questions the Bank of England on creating a "Britcoin" CBDC, advising caution and risk mitigation due to potential abuse of private information 👀

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