The Bank of England has established the Academic Advisory Group for Central Bank Digital Currency (CBDC). The group will bring together experts from various fields, including monetary policies, economics and competitiveness, behavioral sciences, law, innovation theories, marketing, and business. In addition, this group aims to exchange knowledge and academic research on topics related to CBDC.
The objective of the Academic Advisory Group for CBDC is to assist the central bank in understanding the practical challenges associated with the design, implementation, and operation of the CBDC. The group will not be responsible for decision-making. The Bank of England added that through this group, it aims to create an academic foundation on this subject and enhance multidisciplinary dialogues.
In February, the bank solicited public opinions on the English CBDC. While a decision regarding the introduction of the CBDC has not been made yet, the bank has concluded that it will need a CBDC in the future. The work on this project has now commenced in the design phase.
The Bank of England stated, “Over the coming years, we look forward to studying the technology and policy requirements for a digital pound.” Similarly, the English Finance Minister, Rishi Sunak, remarked, “Despite the continued existence of paper money, a CBDC issued and backed by the Bank of England could provide a new reliable and user-friendly means of payment.”