About the event
Dates: Monday 5 July & Thursday 8 July 2021
On 7 June we published a Discussion Paper on New Forms of Digital Money, and a Summary of Responses to the March 2020 Discussion Paper on central bank digital currency (CBDC). The Discussion Paper aims to broaden the debate around new forms of digital money and seek views on our emerging thoughts on the subject, whilst the Summary of Responses will help inform our thinking on CBDC and will support the ongoing work of the recently announced CBDC Taskforce, Engagement and Technology Forums.
Given the significance of both of these publications and their implications for our future work, we hosted two webinars focusing on each of the topics in turn. The first focused on the New Forms of Digital Money Discussion Paper, and the second focused on CBDC.
New Forms of Digital Money – Monday 5 July 2021 from 1pm-2pm
The Discussion Paper on New Forms of Digital Money focuses on stablecoins aimed to be widely used as a means of payments in the UK and CBDC. At the webinar, we presented how these new forms of digital money can provide benefits to the real economy but also pose risks to financial stability that need to be carefully addressed. We presented our illustrative scenario, which models the possible demand for new forms of digital money, the impacts on banks’ balance sheet and the implications for credit creation. After presenting possible implications for macroeconomic stability, we introduced our proposed approach to the regulation of systemic stablecoins to ensure that they are safe to use for businesses and households, and that they meet our expectations before being used widely in the UK.
This webinar is an important part of our outreach to discuss the issues raised in our paper with a wide range of stakeholders. Presenters included members of our Financial Market Infrastructure Directorate, the FinTech Hub and our Central Bank Digital Currency (CBDC) Unit.
