Rishi Sunak launches taskforce on Bank of England digital currency
April 19, 2021, 10:10 am

Rishi Sunak launches taskforce on Bank of England digital currency

Rishi Sunak said his proposals would enhance the UK’s competitive advantage in fintech.

Chancellor says move is one of measures designed to boost City after UK’s Brexit departure from EU Rishi Sunak

A Bank of England digital currency for the UK has moved a step closer after the chancellor Rishi Sunak announced a top-level taskforce to explore the benefits and risks of the idea.

Sunak said a joint Treasury-Bank of England taskforce was being set up as part of a range of measures designed to boost the City following Britain’s departure from the EU.

Speaking at a financial industry conference, the chancellor said a taskforce jointly led by the Bank’s deputy governor for financial stability, Jon Cunliffe, and the Treasury’s director general of financial services, Katharine Braddick, would “coordinate exploratory work”.

Sunak said he wanted the City to be at the forefront of innovation and to take advantage of regulatory freedom after Brexit. The Treasury said two new forums would be established to engage technical experts and key stakeholders including financial institutions, retailers, businesses, civil society groups and consumers.

With the decline in the use of cash and the increased prominence of cryptocurrencies such as bitcoin, there has been heightened interest among policymakers about the viability of central bank digital currencies (CBDCs).

Sunak is also keen to show that the City will remain a global financial centre despite the loss of jobs and business that has occurred as a result of Brexit. No special provisions were made for the financial services sector in the deal concluded between London and Brussels late last year.

Threadneedle Street said no decision had been made but said a CBDC would represent a new form of digital money that it would issue for use by households and businesses. “It would exist alongside cash and bank deposits, rather than replacing them,” he added.

The Bank added that the taskforce would engage widely with stakeholders on the benefits, risks and practicalities” of a CBDC.

Among the issues are likely to be how the Bank of England would get the new currency into the economy, how households and businesses would use it and the implications for financial stability.

In a sign that an official digital currency for the UK remains some way off, the Bank said its work with the Treasury would:

Coordinate exploration of the objectives, opportunities and risks of a potential UK CBDC.

Guide evaluation of the design features a CBDC must display to achieve its intended goals.

Support a rigorous, coherent and comprehensive assessment of the overall case for a UK CBDC.

Monitor international CBDC developments to ensure the UK remains at the forefront of global innovation.

Sunak said his proposals would enhance the UK’s competitive advantage in fintech – the use of technology designed to make the delivery of financial services product more efficient. These would include helping firms to “scale up” and the use of a “sandbox” – a testing environment – to explore financial products that would help to reduce greenhouse gas emissions.

“Our vision is for a more open, greener, and more technologically advanced financial services sector,” he said. “The UK is already known for being at the forefront of innovation, but we need to go further. The steps I’ve outlined today, to boost growing fintechs, push the boundaries of digital finance and make our financial markets more efficient, will propel us forward. And if we can capture the extraordinary potential of technology, we’ll cement the UK’s position as the world’s pre-eminent financial centre.” Rishi Sunak

source: Larry Elliott

Levant

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BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).

Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.