- A UK Central Bank Digital Currency and Bitcoin can coexist, says the head of the region’s CBDC plans
- Katie Fortune told a financial symposium that there was also a role for sully backed stablecoins
- Fortune’s view is at odds with that of the bank’s governor over Bitcoin
The head of the Bank of England’s Central Bank Digital Currency (CBDC) development believes that Bitcoin can coexist with a UK CBDC, saying that the bank envisions an ecosystem where different forms of money interact and have different purposes. Katie Fortune said that decentralized coins and backed stablecoins could interact with a CBDC, which could act as a bridging asset. This positive view of the future is somewhat at odds with the views of the Bank of England’s governor Andrew Bailey, who has dismissed Bitcoin on multiple occasions.
Fortune Envisions Multi-currency Ecosystem
The UK has been pushing ahead with its plans to launch a CBDC, dubbed the ‘Britcoin’, with suggestions that it could be in place by the end of the decade. During a recent panel at the Citi Digital Money Symposium, Fortune discussed how potential state-issued CBDCs could coexist with Bitcoin or asset-backed stablecoins, stating that the Bank of England envisions a diverse financial ecosystem with various forms of currency, similar to the current system with different mechanisms for bank deposits and physical cash.
Fortune compared the current financial system to what could be achieved with the introduction of a CBDC, stating, “What you have today is, I have a Santander account, I can go to a cash machine and take out the same cash my friend with a Barclays account takes out.”
Bitcoin and Stablecoins Have a Role to Play
Fortune suggested that in a world of stablecoins and digital currency, a CBDC could serve as a powerful bridging asset between various forms of money. This bridging asset could prevent the formation of separate financial ecosystems and establish standards that would encourage innovation. The CBDC head also argued that the Britcoin could ensure the interoperability of different forms of money, leading to greater efficiency and inclusivity in the financial system.
Fortune’s view of a multi-asset future flies in the face of the views of Governor Andrew Bailey, who has previously said that Bitcoin is worthless, although it does echo the new more positive stance on cryptocurrencies from the British government.
