25 April 2017
visit nextgenbanking.co.uk

BofE advertises for digital currencies research lead

19 August 2016  |  6525 views  |  0 London stock exchange 2

The Bank of England is advertising for an economic research lead at its digital currencies team as it steps up its investigation into a central bank-issued 'Britcoin'.

The BofE has been exploring the possibility of a central bank digital currency (CBDC) — a universally accessible and interest-bearing central bank liability, implemented via distributed ledgers, which competes with bank deposits as medium of exchange.

According to a job listing, the new research lead will join a digital currencies team that is examining a CBDC from a technological, economic, and regulatory/legal perspective and whether it is desirable.

The new position will include responsibilities to carry out original research, provide leadership for other internal and external research, and offer policy development and project management.

The BofE's deputy governor of monetary policy Ben Broadbent has floated the idea of using distributed ledger technology to enable individuals to hold digital currency accounts with the central bank. In a speech at the London School of Economics he suggested a BofE account could be simply 'e-cash' that can only be used for retail transfers, or it could be a proper account that pays interest.

However, he warned that such a move would have far-reaching consequences for the commercial sector. On one hand it would make banks safer by reducing the risk of a run if a shock causes people to try to close accounts. However, he warned, taking deposits away from banks could make it harder for them to make loans and make them more reliant on wholesale markets.

A recent research paper by his colleagues at the bank, John Barrdear and Michael Kumhof, says that such a plan could have major economic benefits, with issuance of 30% of GDP, against government bonds, potentially permanently raising GDP by as much as three per cent.

Candidates with strong understanding of economics and financial systems have until 15 September to apply for the new role which has a salary of up to £70,000.

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Central bank digital currency could boost GDP - BofE

Central bank digital currency could boost GDP - BofE

19 July 2016  |  6264 views  |  0 comments | 17 tweets | 11 linkedin
House of Lords asks BofE deputy governor: Time for 'Britcoin'?

House of Lords asks BofE deputy governor: Time for 'Britcoin'?

15 July 2016  |  7528 views  |  0 comments | 12 tweets | 6 linkedin
Distributed ledger tech could see Brits get Bank of England accounts - deputy governor

Distributed ledger tech could see Brits get Bank of England accounts - deputy governor

02 March 2016  |  7424 views  |  0 comments | 17 tweets | 15 linkedin
BofE launches blockchain challenge to find interns

BofE launches blockchain challenge to find interns

27 November 2015  |  8756 views  |  0 comments | 17 tweets | 13 linkedin
BofE's Haldane suggests ditching cash for cryptocurrency

BofE's Haldane suggests ditching cash for cryptocurrency

18 September 2015  |  15812 views  |  3 comments | 31 tweets | 23 linkedin
Bank of England could issue own digital currency

Bank of England could issue own digital currency

26 February 2015  |  19739 views  |  4 comments | 54 tweets | 29 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit dh.comVisit capgemini.com

Top topics

Most viewed Most shared
hands typing furiouslyDoes the Buck Stop with GameStop?
13465 views 0 | 3 tweets | 14 linkedin
BBVA runs live funds transfers over RippleBBVA runs live funds transfers over Ripple
11189 views comments | 30 tweets | 20 linkedin
Alipay and WeChat near $3 trillion payments milestoneAlipay and WeChat near $3 trillion payment...
9439 views comments | 35 tweets | 38 linkedin
Western Union and MoneyGram unveil Facebook Messenger bots; Mastercard and Amex pile inWestern Union and MoneyGram unveil Faceboo...
8868 views comments | 17 tweets | 17 linkedin
Coinbase plans Ethereum messaging appCoinbase plans Ethereum messaging app
8554 views comments | 14 tweets | 15 linkedin

Featured job

to 120K base, £300K ote, stock options
London, UK

Find your next job