WASHINGTON,Oct26(Reuters)-TheBankofEnglandisreluctantlypressingonwithworktocreateaformofdigitalmoneyaccessibletothegeneralpublic,ascommercialbanksriskfailingtokeepupwithless-regulatedtechfirms,GovernorAndrewBaileysaidonSaturday.
Bailey\'sremarksbuildonhislongstandingconcernsthathedoesnotwanttoseeday-to-daypaymentsorbanking-typeservicesshifttocryptocurrenciesorservicesfromtechcompaniesthatarelesssafeorprivatethanbanks.
TheBoEandBritain\'sfinanceministryhavesaidtheywillnotmakeafinaldecisionbefore2025attheearliestwhethertogoaheadwithastate-backeddigitalpoundorcentralbankdigitalcurrency(CBDC),followingaconsultationwhichdrewwidespreadconcernsaboutprivacy.
\"That(CBDC)isnotmypreferredoption,butit\'sonewecan\'truleout,\"BaileysaidattheGroupofThirtyinWashington,aforumforcentralbanksandcommercialbankers.
WhileBritain\'selectronicpaymentinfrastructurealreadyprovidesfasttransferswithnoupfrontcostsforthepublic,futureformsofdigitalcurrencycouldoffermoreoptionsinareassuchasautomaticpayments.
\"Commercialbankmoney,i.e.thebankingsystem,isthebesthomeforthatinnovation,\"Baileysaid.
\"But...aretheytheonlygameintown?AttheBankofEnglandwe\'recontinuingtoprepareforaretailCBDC,becausetobefrankwearenotyetseeingenoughevidencethatinnovationwillhappeninthecommercialbankingsystem.\"
Commercialbanksmightbeavoidinginnovationbecausetheymadetoomuchprofitfromthecurrentsystem,Baileysaid.
\"Tobeparticularlyfrankaboutthis,iftherentsthatarebeingearnedfromthe\'rails\'(paymentsystems)acttoinhibitinnovationandacttoinhibitcompetition,thatiswhy...weneedaretailCBDConthetable,\"Baileysaid.
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