Digital Assets
Exploring the Digital Pound
Understanding the Digital Pound is key to navigating future financial landscapes, offering insights into digital innovation, user security, and economic implications.
Fintech Literacy
PESTL Analysis
Cryptocurrency Understanding
Digital Strategy
Policy Evaluation
Course Lessons
The Global Rise of CBDCs
Chapter 1 outlines the extensive global interest in Central Bank Digital Currencies (CBDCs), with 87 countries, representing over 90% of global GDP, investigating or developing CBDCs. Despite this widespread interest, most are still in exploratory or developmental phases, with a few like Jamaica and the Bahamas having launched CBDCs. China is highlighted for its advanced but still in pilot phase CBDC program.
Why Central Banks are Going Digital
Chapter 2 discusses the scepticism surrounding CBDCs, questioning whether they truly address an existing financial gap or are solutions-seeking problems. It delves into the rapid and unexpected rise of digital currencies, which took many central banks by surprise, and their subsequent rush to explore CBDCs as both a means of modernising financial systems and potentially enhancing financial inclusion.
Demystifying the Digital Pound
Chapter 3 focuses on the Bank of England's cautious and comprehensive approach towards the potential issuance of a digital pound. Engaging in public consultations and technological design, the Bank is in a design phase without a definite decision to issue a CBDC, projecting a launch timeline between 2026 and 2030.
The Digital Pound: A PESTL Analysis
Chapter 4 explores the supportive legal and political environment in the UK for creating a digital pound, balancing technological advancements and environmental benefits against societal concerns. The potential for programmable money to infringe on privacy and freedom highlights the social tensions surrounding CBDCs.
Beyond Cash: CBDCs vs. Cryptocurrencies
Chapter 5 compares and examines the fundamental tension between the decentralisation ethos of cryptocurrencies and the centralised nature of CBDCs. While acknowledging CBDCs may not directly replace cryptocurrencies, it posits CBDCs as an innovative addition to the financial landscape, potentially serving as a digital alternative to cash.
The Future of Money: The Digital Pound and Beyond
Chapter 6 analysis CBDCs' competitive edge over stablecoins, particularly those pegged to fiat currencies. CBDCs, with their central bank backing, are posited as having a significant advantage over fiat-backed stablecoins in terms of trust, regulatory clarity, and potentially broader utility in the financial system.