Shortly after eurozone finance ministers endorsed continuing work on a digital euro, Bank of England (BoE) governor Andrew Bailey expressed doubt regarding the necessity of a digital pound, as reported by Cointelegraph.
According to Cointelegraph, a wholesale central bank digital currency (CBDC) has recently been called into question by the governor of the Bank of England (BoE), who pointed out that there already is a system for wholesale central bank money settlement that has undergone a significant upgrade. “We have to be very clear what problem we are trying to solve here before we get carried away by the technology and the idea,” BoE governor.
Bailey’s remarks come in response to recent remarks made on the costs and risks of creating a CBDC by a former BoE adviser as well as recent developments involving CBDCs in the eurozone, Cointelegraph further informed.
It is to be further noted that Russia and Iran are investigating the possibility of developing a new stablecoin that is backed by gold. Iran and Russia are working together to develop a so-called “token of the Persian Gulf region” to facilitate cross-border trade, according to a report by the Russian news agency Vedomosti.
(With insights from Cointelegraph)