Security Expert Reaction On Bank Of England Considering Digital Money Plan

News broke recently that the Bank of England is setting up a task force to assess the possibility of a central bank digital currency.

Experts Comments

April 22, 2021
Andy Renshaw
VP of Payments Strategy & Solutions
Feedzai

The shift towards digital payments was already well underway before the pandemic, but the national lockdowns certainly accelerated the trend. This resulted in a significant increase in fraud attempts – a 650% increase in account takeover fraud attacks, as shown by Feedzai’s Financial Crime Report.

 

The increasing digitalisation of financial services clearly denotes a demand for more agile and cost-effective transactions and a centralised digital currency could respond to that.

The BoE's CBDC

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The shift towards digital payments was already well underway before the pandemic, but the national lockdowns certainly accelerated the trend. This resulted in a significant increase in fraud attempts – a 650% increase in account takeover fraud attacks, as shown by Feedzai’s Financial Crime Report.

 

The increasing digitalisation of financial services clearly denotes a demand for more agile and cost-effective transactions and a centralised digital currency could respond to that.

The BoE's CBDC plan welcomes financial inclusion and, in parallel, the BoE will have better control of GBP intake and distribution, understanding with greater precision the participants across the economy and thus enabling greater opportunities to mitigate financial crime that continues to be prevalent.

 

The infrastructure that banks will have to put in place will need to reflect the level of risk that is inherent to crypto assets. This will have to include solutions to enable the swift identification of risks becoming issues and the measurement of any potential impact end to end. Sometimes, legacy metrics and measurements are not easy to separate, and knowledge is key to knowing and addressing risks early.

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