Digital currencies, unlocking innovation in payments
Digital currencies are emerging across the globe, with industry-led initiatives and new projects being explored by governments. Internationally, regulators and policymakers are exploring the use cases for digital currencies, as well as the best regulatory frameworks.
In the United Kingdom, the fintech strategy laid out by the Kalifa Review included many important and positive recommendations, particularly to promote the digitisation of financial services and explore the potential of digital currencies further.
techUK held a roundtable with members and the participation of the Bank of England on 16th May to discuss the progress made on CBDC and some of the use cases.
Exploring Central Bank Digital Currencies
The exploration of the deployment of a Central Bank Digital Currency, which was promoted in the Khalifa Review, is a great stimulus for the UK to remain ahead in the integration of innovation in financial services.
The industry has responded favourably, and the newly created forums and the upcoming consultation will provide a much-needed platform for discussion about the use cases for CBDC and its potential for financial inclusion for example.
Depending on the model and design ultimately chosen, it could have wide-ranging implications for all customers and industries. Therefore, the collaboration between regulators, policymakers and industry will be essential for the UK to deliver a world-leading initiative.
New regulations and opportunities for crypto assets
The government recently announced that it will set out plans to make the UK a ‘global crypto-asset technology hub’, with an upcoming regulation for those new assets and tokens.
It is critical as the UK aims to remain a global leader in innovation and fintech adoption to ensure the regulatory framework enables all to harness the opportunities of innovative technologies in financial services, including supporting the safe adoption of cryptocurrencies.
The industry is developing new products and services at a fast pace with new use cases, in traditional banking but also in embedded finance where consumers can access services from non-traditional financial services. The integration of crypto assets and CBDC could bolster innovation in a competitive and vibrant ecosystem, which could have wider positive effects on the economy and society.
As for CBDCs, working with all stakeholders will be essential to provide the best framework for innovation, inclusion, and increased protection for consumers.
These developments are promising in both the public and private sectors, and techUK is looking forward to working with all stakeholders on the future of digital currencies, CBDCs and crypto-assets.
Join the Financial Services Programme
Now more than ever, financial services providers embark on new digital transformation journeys to improve processes, resilience, and services. We bring together and connect firms from across the ecosystem to ensure innovation and technology can be fully harnessed and embraced by industry and regulators.
Hugo joined techUK in March 2019 as the Programme Manager for Financial Services and Payments.
Before joining techUK, he worked in policy and public relations for different bodies and agencies, including the economic and financial services team of the French Prime Minister’s EU affairs department, Edelman and CMS Strategic.
Hugo holds a master’s degree in Public Affairs from Paris Sorbonne University. In his spare time, he enjoys cooking and photography.
Julia Ofori-Addo supports the Digital Connectivity Forum and a range of techUK Market Programmes such as; Central Government, Financial Services, Communications Infrastructure and Services, UK Spectrum Policy Forum as well as the Nations and Regions Programme with the secretariat and event support, research and communication.
Julia is a bilingual – German and English native. Prior to joining techUK, Julia worked as an IT Team Administrator at Interxion Ltd (data center) supporting and coordinating teams with the Incident Management Protocols (IMP), auditing and reporting procedures and processes and assisting senior management with various secretarial/administrative duties. She has exceptional experience in handling and updating in-house database systems and a proven track record of demonstrating strong interpersonal skills.
Julia is a graduate at the University of Kent with a BSc in Computer Science and Business Administration. In her personal time, she enjoys current affairs discussions, going to the gym and travelling.