"There might be a case for digital currency," Bank of England's Bailey says
May 14, 2021, 10:15 am

Representation of the Bitcoin virtual currency standing on the PC motherboard is seen in this illustration picture, February 3, 2018. (Reuters)

"There might be a role for a state-backed digital currency in Britain although there would be big implications ranging from the setting of interest rates to privacy," Bank of England Governor Andrew Bailey said

"It may well be that we do end up with a digital currency. It's a few years off at the moment," he added

"The use of cash was decreasing but creating a central bank-backed currency would have significant impacts on the financial system and beyond," Bailey said.

"Security, that is an issue for us. Privacy, that's a big issue, a very big issue," he said.

"Plans developed by Facebook for a digital currency set off a lot of alarm bells about access to information," Bailey said.

Earlier on Thursday, Deputy Governor Jon Cunliffe said he saw good reasons for a BoE digital currency.

British Finance Minister Rishi Sunak demanded the BoE and other regulators last month to look at the case for creating a central bank digital currency to respond to the challenge from cryptocurrencies such as bitcoin.

"Factors that were pushing up inflation would probably not persist, but the BoE would watch the situation very closely," Bailey said

"The really big question is: 'Is (higher inflation) going to persist or not?' Our view is that on the basis of what we're seeing so far, we don't think it is," Bailey said.

"We think there are reasons to think that the economy will start to bounce back this year but it can't be sustained at that level of growth," he said. "But we are watching it very carefully.... Yesterday we had a very high number for inflation in the U.S."

"There was currently no prospect of an agreement on "equivalence" of rules for the sector," Bailey said about Britain's attempts to secure a post-Brexit deal on financial services with the European Union.

He repeated his view that London should not try to get such a deal at any price.

"There's no lack of goodwill. But if this issue isn't sorted out then I'm afraid we will learn to live without equivalence, that's the reality of it." Bailey said

Officials from Britain's financial services sector say they do not expect access to the EU's markets for the foreseeable future.

William Schomberg, Reuters, Bank of England's Bailey says there might be a case for digital currency

Our Standards: The Thomson Reuters Trust Principles.

The Turkish and Saudi Ministers of Foreign Affairs Meet in Mecca To stop financing coal projects, UK wants global deal

BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, has sponsored the BuildHer CityHack 2025 Hackathon, a two-day event spearheaded by the College of Engineering and Technology at the Royal University for Women (RUW).
Aimed at secondary school students, the event brought together a distinguished group of academic professionals and technology experts to mentor and inspire young participants.
More than 100 high school students from across the Kingdom of Bahrain took part in the hackathon, which featured an intensive programme of training workshops and hands-on sessions. These activities were tailored to enhance participants’ critical thinking, collaborative problem-solving, and team-building capabilities, while also encouraging the development of practical and sustainable solutions to contemporary challenges using modern technological tools.
BENEFIT’s Chief Executive Mr. Abdulwahed AlJanahi, commented: “Our support for this educational hackathon reflects our long-term strategic vision to nurture the talents of emerging national youth and empower the next generation of accomplished female leaders in technology. By fostering creativity and innovation, we aim to contribute meaningfully to Bahrain’s comprehensive development goals and align with the aspirations outlined in the Kingdom’s Vision 2030—an ambition in which BENEFIT plays a central role.”
Professor Riyadh Yousif Hamzah, President of the Royal University for Women, commented: “This initiative reflects our commitment to advancing women in STEM fields. We're cultivating a generation of creative, solution-driven female leaders who will drive national development. Our partnership with BENEFIT exemplifies the powerful synergy between academia and private sector in supporting educational innovation.”
Hanan Abdulla Hasan, Senior Manager, PR & Communication at BENEFIT, said: “We are honoured to collaborate with RUW in supporting this remarkable technology-focused event. It highlights our commitment to social responsibility, and our ongoing efforts to enhance the digital and innovation capabilities of young Bahraini women and foster their ability to harness technological tools in the service of a smarter, more sustainable future.”
For his part, Dr. Humam ElAgha, Acting Dean of the College of Engineering and Technology at the University, said: “BuildHer CityHack 2025 embodies our hands-on approach to education. By tackling real-world problems through creative thinking and sustainable solutions, we're preparing women to thrive in the knowledge economy – a cornerstone of the University's vision.”