Bank of England Chief Cashier Supports Digital Pound Issue

Sarah John, who is responsible for issuing banknotes at the Bank of England, supported the idea of ​​a state cryptocurrency andnoted that central banks should develop rapidly in this direction.

Bank of England has not yet officially confirmed planson the issue of the digital pound, however, the chief cashier of the Central Bank of Great Britain Sarah John supported this idea. She claims that it’s “extremely important” for central banks to take part in the stablecoins race, otherwise they will lose to technological conglomerates. John told The Telegraph:

“It’s absolutely correct that central banks think about who will ensure the circulation of digital currency in the future.”

Global State Racecryptocurrencies accelerated significantly after Facebook announced plans for the release of stablecoin Libra. According to John, it is vital that central banks find the right balance for the healthy participation of the private sector in the issue of stablecoins. She called on the Bank of England to take urgent measures to ensure its future monetary and financial stability, stating:

“We, as a financial institution, need to thinkon how to position yourself to make sure that the company still has a wide range of payment solutions that it can use with confidence. “Technology is developing very fast, so central banks are very vigilant about the fact that they risk transferring full control over money management to the private sector.”

John is not the only one concerned about the growing threat fromby technology companies and the private sector. In the middle of the month, the chairman of the US Federal Reserve Board, Jerome Powell, said that the announcement of Libra served as an impetus to begin active work on a digital dollar.

Bank of England Governor Mark CarneyCarney said last year that the US dollar, which is the global reserve currency, needs to be replaced by a digital currency similar to Libra. In general, more and more central banks are thinking about issuing their own cryptocurrency. The other day, representatives of ten central banks discussed state-owned cryptocurrencies at a conference in Kyiv.

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