Sector needs 'much more' info on CBDC

By Rebecca Weller

- Last updated on GMT

CBDC: sector needs more information (Credit: Getty/ MF3d)
CBDC: sector needs more information (Credit: Getty/ MF3d)

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The Government needs to share “much more information” about how central-bank digital currency (CBDC) will impact the hospitality sector, according to one Suffolk based operator.

This comes as Chancellor Jeremy Hunt recently claimed a state-backed digital pound was likely to be launched later in this decade, citing it as a new "trusted and accessible" way to pay.

"We want to investigate what is possible first, whilst always making sure we protect financial stability” Hunt added.

Less volatile 

The Treasury and the Bank of England have been reported to be formally starting a consultation for the digital currency, which could use technology similar to cryptocurrencies like Bitcoin, today (Tuesday 7 February).

While cryptocurrencies are not currently backed by a central bank, the digital pound would be less volatile and not subject to rapid changes like most cryptocurrencies; ten digital pounds would retain the same value as £10 in cash, according to the Treasury.

However, licensee of the Unruly Pig in Bromeswell, Brendan Padfield explained the Top 50 Gastropub had not taken cash for around three years now and with online banking systems already in place, the proposed new system would not be so different for most operators.

Though he added the Government needed to “share much more information about how it will positively impact” the sector.

Stability and confidence 

He said: “The backing of the of a central bank to crypto currency will make all the difference to stability and confidence to avoid some of the recent problems we've seen with crypto currency.

“Many pubs have already moved to a cashless operation and digital banking. This seems to be a logical extension.

“At this early stage, it's difficult to fully assess the operational impact of a movement to cryptocurrency but on the face of things, I would not have thought the effect would be dramatic.

“Anything that improves the speed, efficiency and security of banking is to be encouraged and applauded as we increasingly move to a cashless society.”

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