Bank Of England To Hire Researchers And Academics To Advise On Digital Pound

The Bank of England plans to recruit researchers and academics across the UK. These new hires will be part of the bank’s CBDC Academic Advisory Group (AAG). The recruitment drive is the latest development announced by the bank in its pursuit of a central bank digital currency.

Bank of England sets up a CBDC Academic Advisory Group

The Bank of England has said that the advisory group will comprise experts from various sectors related to its efforts around the digital pound. The team will focus on monetary policy, finance, competition economics, behavioral science, law, innovation theory, business, marketing, and industrial organization.

The bank outlined that it had been working with HM Treasury to assess the goal behind a digital pound and how such a digital currency could be designed. The bank referred to a consultation paper released earlier this year saying that a digital pound would most likely be used.

“In February 2023, the Bank of England and HM Treasury jointly issued a Consultation Paper setting out an assessment of the motivations and design choices for a potential digital pound. While no decision has been made, that paper signalled that the digital pound is likely to be needed in the future, so our work will now move onto a design phase,” the bank said.

The bank also said that the goal behind this design phase was to create a broad and conceptual infrastructure. It would also conduct experiments and proofs of concept by working with innovators across the private industry. There is also a need to inform the development of the potential architecture.

The objective is to grow the digital currency technology insights across the banks and the private sector. The approach will guarantee that the development of this digital pound will be accelerated if a decision is made to create the CBDC.

The advisory team will also partner with the Bank of England and HM Treasury. The team will generate academic input on various topics linked to retail CBDCs. The bank is also attracting the participation of academics from across disciplines and backgrounds. Those who intend to be part of the advisory team will have until September 3 to make their applications.

Bank of England’s CBDC plans

Earlier this year, the UK started a consultation process on the digital pound. The UK government and the Bank of England noted that the consultation was needed. The initial consultation process ended in June, with the bank planning to have a design phase in the coming two years.

Besides England Russia and China are also launching their CBDC plans. Russia recently started the pilot for the digital ruble. The country has been affected by the sanctions imposed by the US and Europe, with the CBDC seen as a way of circumventing the sanctions. China also recently announced that its digital yuan was being used to pay taxes.