After El Salvador wanted to recognize Bitcoin (BTC) as its official currency, the community that closely followed this development ‘split’ into two opinions: full support and vice versa.
Some consider the adoption of Bitcoin (BTC) an inappropriate action, instead it is better to create a national digital currency as China is working on, rather than relying on crypto alone.
The latest fintech director at the Bank of England (BOE), Tom Mutton described CBDC as safer money. Personally, he also distinguishes CBDC which is overshadowed by stablecoins from other ‘private money’.
The ability to convert and there is demand, ‘private money’ - like bank deposits, into ‘public money’ issued by the central bank in cash is fundamental. It also encourages the understanding that different types of money are uniform and can be exchanged. ”
Mutton also believes the CBDC in the country needs attention before launch. This shows his optimistic attitude towards digital currency including the role of blockchain towards digital pound.
His opinion was expressed in the ‘Future of Fintech’ conference by FStech yesterday. Not to be outdone Mutton also responded to a discussion paper published by the BOE last year, involving 39% of responses from technology and fintech firms and 5% from financial institutions.
“Regardless of the outcome, whether CBDC is needed or not, an in -depth study needs to be done to reach agreement in its pros and cons. It is important before reaching any conclusions. ”
