Katie Fortune, who is in charge of developing Central Bank Digital Currencies (CBDCs) at the Bank of England, thinks that CBDCs and Bitcoin can coexist. CBDCs are digital currencies issued by a central bank that tracks the price of a fiat currency like the dollar or pound.
Fortune believes that a CBDC could act as a bridge between stablecoins and other digital currencies, ensuring there are no separate ecosystems and setting standards to promote innovation.
Fortune thinks that having a uniform monetary system is a good thing for society, similar to the services and infrastructure provided by governments. The Bank of England has been promoting the idea of a digital pound or “Britcoin” in recent months, with retail payments and e-commerce is the main use cases for CBDCs.
The infrastructure needs to be in place to facilitate smoother processes, and Fortune believes that this will lead to new delivery services that we may not have even imagined yet.
During a panel discussion at the Citi Digital Money Symposium, Fortune compared the current financial system with the potential introduction of a CBDC.
She explained that having a mixed ecosystem of different forms of money, similar to today’s different mechanics for bank deposits and cash, would be powerful in a world of stablecoins and digital currencies.
She thinks that a CBDC could serve as a bridging asset between these various forms of money, setting standards to boost innovation.
Fortune also emphasized that having a uniform monetary system is not about government control but rather a social good. She thinks that setting standards for CBDCs and stablecoins can enable private innovation that can then interoperate with each other, as seen in other industries.
By having a standard central bank digital currency, separate ecosystems can be avoided, and the potential for stablecoins and CBDCs to drive the next economy can be realized.
The Bank of England is focusing on retail payments and e-commerce as the main use cases for CBDCs. Fortune believes that having the infrastructure to allow for smoother processes is crucial. Once this is in place, new delivery services will emerge that can provide even more value to consumers.
In conclusion, Katie Fortune, the lead of CBDCs at the Bank of England, thinks that CBDCs and Bitcoin can coexist in a mixed ecosystem of different forms of money. She believes that a uniform monetary system is a social good and can enable private innovation that can interoperate with each other.
The Bank of England is focusing on retail payments and e-commerce as the main use cases for CBDCs, and having the infrastructure in place to facilitate smoother processes is key to driving the next economy.