New UK Prime Minister Rishi Sunak Launching Support For CBDCs: What Are They And What Could Happen Next

Zinger Key Points
  • Rishi Sunak is named as the new Prime Minister of the U.K.
  • The new prime minister hopes to push the country into exploration of digital currencies.

The U.K. named a new prime minister on Monday. The new leader has been known for a vocal supportive position of cryptocurrency, which was already seen in comments made Monday.

What Happened: Rishi Sunak was named the new Prime Minister of the U.K., the third person to have the position in the past two months. Sunak has pushed the country to support cryptocurrency, something he was vocal about while serving as Chancellor of the Exchequer.

Sunak issued support and a new focus on the cryptocurrency sector Monday, as shared by Bitcoin Magazine.

“The G7 is launching a set of policy principles for retail, Central Bank Digital Currencies, CBDCs,” Sunak said.

The U.K. is a member of the G7 along with the United States, Canada, France, Germany, Italy and Japan.

“Central Bank Digital Currencies could be a digital version of money, a bit like a digital banknote that could be used alongside physical notes and coins.”

Sunak said governments and central banks will work together on a potential digital currency that would be issued by a central bank.

Key priorities to consider are having a safe and secure transaction that can offer other ways to pay, be energy efficient and available to everyone, Sunak added.

“This report today will help support and inform exploration of CBDCs and the G7 and beyond.”

Sunak added that he announced a joint task force for the U.K. Treasury and Bank of England to look at CBDCs earlier this year.

Related Link: What Is A Central Bank Digital Currency (CBDC)

What’s Next: Sunak said the decision on a Central Bank Digital Currency (CBDC) is in the exploratory stages.

“The decision on whether to launch a Central Bank Digital Currency is for each country to make, and no G7 jurisdiction has yet made that choice,” Sunak said. “These decisions raise important questions about the reshaping of our economy.”

Sunak called the exploration an important step in the support of cryptocurrency and working with international partners.

“We’re excited to be taking a leading role with G7 members in publishing this exploratory work, bringing money and finance into the 21st century.”

Related Link: Is The White House Late To CBDC Game? Beware Volatility And Hacking, Experts Say

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Photo: Comdas via Shutterstock

 

Posted In: CryptocurrencyNewsPoliticsGlobalTop StoriesMarketsGeneralBank Of EnglandCBDCCBDCsCentral Bank Digital CurrencyG7Rishi SunakUnited Kingdom

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