The Bank of England (BOE) is confident that its central bank digital currency (CBDC) would be “tens of thousands of times” more efficient than Bitcoin.
The Bank of England has assured people that its CBDC would be more efficient than the leading cryptocurrency. The Bank of England’s fintech director, Tom Mutton, said this during the Future of FinTech Conference yesterday.
According to Mutton, the technology behind CBDCs would make them thousands of times more efficient than Bitcoin. He said, “Bitcoin, given its performance shortcomings and energy inefficiency, is in no way a relevant comparison for the sort of technology we might use in a central bank digital currency.”
The fintech director said UK citizens shouldn’t discard blockchain technology, as the Bank recommends for Bitcoin. He pointed out that the technology is a crucial one and is very useful in several areas of the global economy.
Mutton centered his speech on the Bank of England’s lack of interest in the development of a CBDC. He pointed out that the BOE is committed to keeping cash available to the people for as long as they use it. He also discussed some of the concerns regarding CBDCs, such as the need to preserve privacy, increase public trust, and ensure fair access to the technology.
Several central banks globally are working on developing their own CBDCs. The need for the digital versions of fiat currencies arose following the massive adoption of cryptocurrencies and stablecoins. The pandemic also boosted the digital payment sector, with most people now comfortable paying for goods and services using digital currencies.