Bank of England creates digital currency task force
Unlike popular cryptocurrencies like Bitcoin, a CBDC is a centralised digital currency that functions in practically the same way as fiat currency.
The Bank of England’s (BoE) theoretical digital currency would be used by individuals and businesses as an alternative form of payment that supplements (as opposed to replaces) traditional methods, i.e. cash, bank deposits, etc.
- The uses, objectives, opportunities and risks of CBDCs
- Practical design features that will allow a CBDC to meet established goals
- A cohesive assessment of CBDC’s overall usefulness in the UK
- International research to ensure the UK’s global competitiveness
Digital currencies: The future of money?
The information released by the BoE establishes a proactive interest in researching CBDCs, yet it also demonstrates a generally inconclusive assessment of their worth and applicability.
In the latter example, the Central Bank of The Bahamas partnered with Mastercard to enable the country’s ‘Sand Dollar’. The bank stated its hope that introducing a CBDC would promote financial inclusion and incentivise alternative payment methods.
“By working closely with the Central Bank of The Bahamas and Mastercard, we are able to issue a prepaid card unlike any other in the world. We are now able to bring immediate, critical benefits to our customers at a time when they are looking to find new, innovative ways to pay,” said Richard Douglas, Co-Founder of , a vital tech supplier to the venture.
“The Bahamas is leading innovation in CBDCs (central bank digital currencies), and we’re thrilled to be able to play an important role in helping to democratise access to currency, especially in areas that are currently underserved.”
Bitcoin over gold
Despite world governments’ research into the feasibility of CBDCs, it should be noted that decentralised cryptocurrencies, such as Bitcoin, continue to be favoured for their investment potential as much as their () practical use in transactions.
it was found that 67% of millennials would choose Bitcoin over gold. The limited quantity of Bitcoin makes it a good store of value in digital economies where rampant inflation has demoralised investors.
Frictionless banking, the Salesforce way
Alan Donnelly has enjoyed a long and successful career in the IT and financial services industry. He has worked with banks, insurers, payments companies, fintechs and more in support of business transformation programmes for some of the biggest names in the business for the past 27 years.
Today, he’s head of financial services for Salesforce UK, the leading global, cloud-based CRM platform that integrates customers and companies. Donnelly is also currently leading the Salesforce operation that is digitally transforming the UK arm of the Madrid-based Santander Group.
“I have had the pleasure of working with many financia
l institutions over many years,” he says. “Typically, it was involved in helping customers build big banking systems and banking platforms that ran what we would call systems of record. But now, as I've moved into Salesforce and we're building our financial services business, we are really now helping our customers engage with their customers.”
The partnership withSantander is a multi channel operation that sees Salesforce helping the bank to engage better with corporate clients and retail customers via their branches and the internet, says Donnelly.
“We're also helping them with customers, who maybe wish to acquire mortgages and mortgages for the life events. I guess it's a multi connectivity environment. But in every case, Santander needs to understand the customer's requirements and better serve those customers in the right time and the right fashion,” Donnelly explains
He adds, “I also think the ability to contact customers whenever they need help and support, as we've seen in the recent pandemic, has proven critical - so I think technology is definitely much more connectable and effective than it was before.”