The central bank is proceeding with considerable caution as its counterparts around the world – such as the Federal Reserve and the Bank of England – weigh up how to manage the growing popularity of digital currencies, including volatile cryptocurrencies. A digital currency issued by a central bank would be distinct from cryptocurrencies like Bitcoin, Ethereum, and Dogecoin because they would be legal tender and usable for any transaction with a stable value.
A Bank for International Settlements survey showed that 86 per cent of central banks are researching the potential for digital currency, 60 per cent were experimenting with the technology and 14 per cent were deploying pilot projects. It explained that digital currencies issued by central banks could promote diversity in payment options, make cross-border payments faster and cheaper, and promote financial inclusion for those without bank accounts, as well as possibly facilitating fiscal stimulus...