Dear Clients,
Tradeo ceased offering trading services last year in May. Trading and ancillary will not recommence, and the brand/platform will be permanently discontinued.

For the clients with remaining balances, kindly send a withdrawal request through your login or via chat or email. If there are any queries or concerns relating to your account or any other matter, please email us at [email protected]


Bank of England Exploring the Possibility of a Digital Currency

Bank of England Exploring the Possibility of a Digital Currency

Chancellor of the Exchequer, Rishi Sunak, has put a priority task force in place to explore a Bank of England digital currency (CBDC). The top-level team will consider how a new cryptocurrency will impact the UK economy, along with the potential benefits and risks. The aim is to boost the country’s economy after its recent withdrawal from the European Union.

The Why

Cash is used far less often these days, and cryptocurrencies are rising to prominence rapidly. Considering the market capitalization of cryptocurrency exceeded $2 trillion recently, it’s no wonder that policymakers are interested in exploring the possibility of a central bank digital currency.

Rishi Sunak is looking to ensure that the UK maintains a competitive advantage post-Brexit. This is part of his effort to prove that London will remain an important financial hub despite the loss of business and job cuts due to Brexit. Introducing a Bank of England digital currency will keep the nation at the forefront of innovation.

In addition to this, he wants the country to make the most of the regulatory freedom that has come with leaving the EU. There were no unique measures put in place for the financial services sector in the deal created by London and Brussels at the end of 2020.

Sunak also pointed out that the Bank of England having its own digital currency would help prevent new forms of private money from being made, including cryptocurrencies. “Our vision is for a more open, greener, and more technologically advanced financial services sector,” he said. “The steps I’ve outlined today, to boost growing fintech, push the boundaries of digital finance, and make our financial markets more efficient, will propel us forward.”

In a tweet responding to the HM Treasury announcing the news, Sunak jokingly referred to the new potential digital currency as ‘Britcoin’.

Taskforce Duties

The Treasury and Bank of England have assembled a joint task force to explore the concept. The Treasury’s Director General of Financial Services, Katharine Braddick, and the Bank’s Deputy Governor for Financial Stability, Jon Cunliffe, are leading the team.

Though the launch of a CBDC is considered quite a way off, significant research will go into creating a comprehensive assessment of introducing a UK CBDC. The team will also investigate the main objectives of the potential cryptocurrency and figure out exactly how it will achieve its intended goal – to boost the economy after Brexit.

Two new forums will be established to gather insight from technical experts and key stakeholders. That includes retailers, consumers, financial institutions, businesses, and civil society groups, to gain a varied perspective.

A New Form of Digital Money

At present, the creation of the CBDC is not set in stone, but if it does come to fruition, it will represent a new form of digital money. “If a CBDC were to be introduced, it would be denominated in pounds sterling, just like banknotes, so £10 of CBDC would always be worth the same as a £10 note,” the Bank of England said. “Any CBDC would be introduced alongside – rather than replacing – cash and bank deposits.”

The potential CBDC is for use by households and businesses. A key point made by all parties is that it would not be replacing cash and bank deposits. Instead, it would simply exist alongside them.

Final Thoughts

As with most new things, there are potential drawbacks to the UK’s proposed cryptocurrency. Among the issues are precisely how the Bank of England will get the digital currency into the economy. Not to mention how households and businesses will go about incorporating it into their existing financial plan.

However, the UK’s announcement was positive overall. If properly executed, the proposed plan will likely give the nation a competitive advantage in the fintech industry. “If we can capture the extraordinary potential of technology, we’ll cement the UK’s position as the world’s pre-eminent financial centre,” Sunak said.

Legal disclaimer: The material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instruments. UR Trade Fix Ltd accepts no responsibility for any use that may be made of these comments and for any consequences resulting in it. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. The analysis does not involve any specific investment objectives, financial situation and needs of any specific person who may receive it. Past performance does not constitute a reliable indicator of future results and future forecasts do not constitute a reliable indicator of future performance.

It has not been prepared in accordance with legal requirements designed to promote the independence of research, and as such it is considered to be marketing communication. Although we are not specifically constrained from dealing ahead of the publication of our research, we do not seek to take advantage of it before we provide it to our clients. We aim to establish, maintain and operate effective organizational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. We operate a policy of independence, which requires our employees to act in our clients’ best interests when providing our services.