Bank of England official: The Bank of England and the Ministry of Finance are exploring the central bank digital currency Britcoin similar to Bitcoin

It is reported that Ben Broadbent, the deputy governor of the Bank of England in charge of monetary policy, said that the Bank of England is most concerned about the supervision of new payment technologies. So far, the experience of digitalization is that new products and services promoted by new technologies can be adopted on a large scale very quickly, which clearly brings opportunities for financial institutions, enterprises and individuals. We hope to see continuous improvement and reduce the friction and cost of payment.

Interpretation of this information:

The message reported that the Bank of England is most concerned about the supervision of new payment technologies, according to Ben Broadbent, the deputy governor of the bank. Digitalization has enabled new products and services to be adopted on a large scale very quickly, providing viable opportunities for financial institutions, enterprises and individuals. Furthermore, the bank hopes to see continuous improvement in payment systems and a decrease in friction and payment costs.

The emergence and adoption of new payment technologies like blockchain, mobile payments, and digital wallets have disrupted the traditional payment system, creating new opportunities for businesses and individuals alike. However, this also warrants cautious surveillance by regulatory bodies to ensure the safety and security of the system.

The Bank of England is taking a proactive approach to mitigate technology-related risks by adopting policies that are conducive to the proper functioning of payment systems. For instance, the bank has been pursuing the implementation of Real-Time Gross Settlement (RTGS) to minimize settlement risk and strengthen the overall safety and resilience of the payment system.

The successful implementation of these payment technologies will undoubtedly offer significant benefits to users in terms of convenience, speed, and efficiency. This has become particularly important in the context of the pandemic, where contactless payments with mobile wallets and other digital payment systems have been increasingly popular.

As the world continues to evolve and guide the financial services industry towards the adoption of new payment technologies, regulatory bodies must prioritize the safety and soundness of the entire payment ecosystem by providing well-defined legal frameworks, oversight, and guidance. Furthermore, financial institutions must collaborate with other stakeholders to ensure interoperability and compatibility across different payment systems, thereby minimizing fragmentation.