Bank of England survey shows central bank electronic money would boost GDP growth

The Bank of England released the latest survey results showing that electronic currency issued by the Bank of England will bring about an increase in GDP.

This conclusion comes from a working paper released this week, which analyzes the benefits that central bank-issued electronic currencies (hereinafter referred to as CBDCs) will bring to the macroeconomy.

and provides bank managers with a clear picture of the financial system.

The report states:

First, CBDC will lead to a decrease in real estate market interest rates, tax rates, and currency transaction costs, bringing a nearly 3% increase in the stable GDP level. Second, the CBDC regime provides policymakers with another policy tool to stabilize the business circle by controlling the issuance amount and price of CBDC.

Even so, the report still emphasizes the potential problems in this concept and the need to remain clear-headed about the risks involved in the transition to a new monetary and financial system.

Ben Robert, deputy governor of the Bank of England, explored these concepts in a speech a few months ago. In March, he suggested that while such a structure would provide management visibility, it would still cause deposit outflows for British banks. Broadbert was one of the observers at the House of Lords meeting.