El Salvador President Nayib Bukele took a victory lap on Monday after the Bank of England’s British pound rapidly depreciated against the dollar. The institution has since resumed quantitative easing. Its action marks a clear pivot that many in the Bitcoin community predicted central banks would be forced into months in advance. Bukele’s Callout Bukele tagged the Bank of England with a triumphant “Told you,” over Twitter, scoring over 14,000 like and 2000 retweets from his followers. His brief comment…
The economic effects of the COVID-19 pandemic have driven discussions regarding the digitalization of economy with central bank digital currencies. This led a blockchain company in the United Kingdom to propose a central bank-issued digital currency (CDBC) system to the Bank of England.
The company known as L3COS proposed an operating system based on blockchain for a CBDC to the Bank of England (BoE). According to the company, the proposal represents a response to the BoE’s consultation document released three months ago. The document noted some merits and demerits related to central bank virtual currencies and requested feedback from technology providers, financial institutions, and academics.
The company was able to develop a special triple-layer consensus technology which is the pioneering blockchain platform worldwide to provide individual authorities the opportunity to regulate digital economies in a verifiable and legal manner.
“It upholds the autonomy and sovereignty of individual authorities in a regulated and legally compliant form while being immutable, fully auditable, traceable, and transparent, making fraud, money laundering or other black-market financing impossible.”
In the words of the company’s founder and CEO Zurab Ashvil, the special platform is capable of facilitating the development of a CBDC for household and business payments. Ashvil noted that the consensus technology has the potential to transform digitalized economies and empower authorities to regulate digital economies while making transactions secure and legitimate.
L3COS is enthusiastic to see a CBDC issued by the BoE but the central bank said it is yet to make a decision regarding the introduction of a CBDC in a report released in March. BoE digital currencies team manager Ben Dyson featured in a webinar two months ago, noting that this is the time to think about the future of money.
Across the world, the U.S. position regarding the introduction of a CBDC remains unclear, even as the Federal Reserve is still talking about the possible effects of CBDC on commercial banks. However, China is progressing toward issuing a digital Yuan while several other governments are attempting to trial CBDC.