The Bank of England is reportedly planning to hire up to 30 people to develop a central bank digital currency, following their announcement in February that they were beginning further research and development on a digital version of the pound sterling.
The Bank of England has reportedly set its sights on hiring up to 30 individuals to spearhead the development of a central bank digital currency (CBDC). As of February 2021, the UK’s central bank and finance ministry announced that they would commence further research and development on a digital version of the sterling pound, seeking public opinions on the initiative. While some refer to the project as “Britcoin”, the bank has yet to make a final decision regarding the use of distributed ledger technology for a digital pound.
According to a report by the Sunday Times, the bank recently added two positions on its careers page for a Digital Pound Security Architect and Digital Pound Solutions Architect. The bank is offering salaries of up to £80,000 ($99,000) for these positions. Earlier this year, the Treasury advertised for the role of Head of Central Bank Digital Currency.
Ian Taylor, a board adviser for trade association CryptoUK, stated that a team of 30 is a significant resource for the development of a digital pound, implying that the bank is serious about the project’s impact. With this move, the Bank of England joins a growing list of central banks worldwide that are exploring the feasibility of CBDCs.
In the past few years, the central bank has been conducting extensive research into the potential use cases of CBDCs, and the implications of the new technology on monetary policy and the broader financial system. With the rise of cryptocurrencies, central banks have faced increasing pressure to develop CBDCs as digital assets become more mainstream.
In addition to the Bank of England, several other central banks, including the Federal Reserve, the European Central Bank, and the People’s Bank of China, are actively pursuing research and development on CBDCs. The Bank of England’s move to build a 30-person team to develop a digital pound underlines its commitment to exploring the potential of CBDCs and could pave the way for other central banks to follow suit.
As digital currencies continue to gain popularity, the adoption of CBDCs could potentially reshape the financial system and offer new opportunities for innovation and growth. The development of CBDCs could lead to a shift away from traditional banking systems, making it easier for individuals and businesses to transact with one another directly. The use of CBDCs could also provide a means for central banks to better manage and monitor the money supply, combat financial crime and money laundering, and ensure greater financial stability