The Institute of Science & Technology’s AI Special Interest Group is delighted to announce the next in its series of seminars and welcomes William Lovell from the Bank of England.
Abstract
A stable payment system is vital for a stable economy. Digital technology creates an opportunity to improve the efficiency and cost of payments both domestically and cross border. This is true both for everyday retail payments made by private citizens and businesses as well high-value wholesale payments made between financial institutions. Central banks have a key role to play in this transformation given their role making money function correctly. The technology challenge is not insignificant. Any solution needs to be able to meet the challenge of scale and stability that the economy would demand. Creating an environment for innovation must take place with consideration of aspects such as the cyber threat. Although the final decision to launch a CBDC in the UK has not yet been made, The Bank of England is actively working on retail CBDC and consulting on the benefits of wholesale CBDC. This session looks at the technological challenges, the experimentation that has taken place and the Bank’s approach to stimulating innovation.
Event location: Zoom (Online)
Link to register: Click here to register
Date & time: Thu 12th December, 15:30 – 16:30
Guest Speaker
William Lovell
Senior Advisor CBDC, The Bank of England
William is a Technology Advisor on CBDC, Data & Payments. With over 25 years at the Bank of England, he has held a variety of technology roles from application developer and test manager through to heading up the strategy and architecture function. He is currently working on the design of CBDC with a particular focus on the technology challenges that need to be solved. He is co-chair of the Bank’s Artificial Intelligence task force that looks at how they can make the best use of this technology across the Bank. He is also chair of CPMI API experts group working cross-border payments.
Extra Information
The Bank of England Central Bank Digital Currency (CBDC) refers to a potential digital version of the British pound (£) issued and regulated by the Bank of England. It is not yet launched but is under active exploration as part of efforts to modernise the monetary system and keep pace with digital innovation in payments.
Key Features of a Bank of England CBDC
- Official Digital Pound: It would be an official digital currency, distinct from cryptocurrencies like Bitcoin or Ethereum, and would have the backing of the Bank of England.
- Complementary to Cash: The CBDC would co-exist with physical cash and bank deposits, not replace them. The aim is to enhance payment systems, not undermine existing ones.
- Risk-Free: It would carry no credit or liquidity risk since it is issued by the central bank and not a commercial bank.