The Bank of England could launch its MNBC around 2030

MNBC project to be launched by Bank of England

Will Britons soon be able to use sterling e-books? For the time being, the answer is no. However, the Bank of England and the UK Treasury will be launching a public consultation on this trendy topic.

Both institutions want to take their time as the consultation on the MNBC project will not be launched until early 2022.

In a press release, the Bank of England states that this public consultation has several objectives. On the one hand, it will serve to demonstrate the benefits of an MNBC for users and businesses. On the other hand, it will also be able to identify any potential problems it might cause.

Related story – UK speeds up research into digital currency

MNBC to be introduced around 2030 in the UK?

The results of the consultation will allow the UK authorities to determine whether they want to go further. In other words, if the benefits outweigh the drawbacks, the development of an MNBC will be officially launched.

The Bank of England is focusing on an operational and robust technology to enable the project to move forward, at best in the years 2025 – 2030.

It is worth noting the extreme caution of the UK’s central banking institution. Firstly, it explicitly states that no decision has been taken on the future development of the MNBC. For the time being, it is only a public consultation.

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Secondly, while MNBC projects are progressing all over the world, the perspective of 2030 seems very distant. Moreover, the potential MNBC would not be intended to replace the existing system, including coins and notes.

Is the UK’s caution on MNBC related to its laissez-faire policy on cryptocurrencies? Indeed, the authorities do not seem to be in a hurry to legislate on this subject, unlike their neighbors.

There are even rumors of a rather permissive future legislation, in order to attract investors. And this, even though the British financial regulator, the Financial Conduct Authority (FCA), adopts contradictory positions from one week to the next.

Going further – UK: over-regulation of cryptocurrencies not the priority

MNBC projects are multiplying around the world

While the UK wants to take its time before launching its potential MNBC, other central banks around the world are not. Within the eurozone, the European Central Bank last summer launched a <a href=”https://cryptoast.fr/european-central-bank-euro-numeric/”>public consultation to determine the utility of a digital euro.

Recently, it was Nigeria that communicated about its future digital currency, the eNaira, as residents turn to cryptocurrencies en masse. Moreover, the Dunbar project, which brings together four central banks (Australia, Singapore, Malaysia, South Africa) is also in the pipeline.

Whatever the case, MNBCs represent a future for central banks, which see them as a response to the emergence of cryptocurrencies like Bitcoin (BTC). Nevertheless, the UK’s 2030 deadline seems to overlook the speed at which the sector is evolving.

Read – MNBCs will greatly improve fees and speed of transfers, says report

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About the author: Benjamin Allouch

The Bank of England could launch its MNBC around 2030

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Formerly a lawyer specialized in personal data and digital law, I quickly became interested in Bitcoin, blockchain technology and their legal implications. I am now a freelance consultant and writer in the field of cryptocurrencies and blockchain.
All articles by Benjamin Allouch.