Chief Cashier of Bank of England (BoE), Sarah John, has said it is crucial that central banks research digital currencies.

Per the report, John said it is very important for the BoE and other central banks to consider whether digital currencies could form the basis of new payments. If so, she said the banks can develop ways to regulate them and strike a balance with private issuers.

She added that, the BoE needs to consider its position on technology to ensure the United Kingdom has broad range of payments that it can use with confidence. John claims there is nothing wrong with central banks thinking about whether a public or private sector would be best to provide a digital currency going forward.

Going forward, John also suggested that the central banks should clearly define roles for private digital currency issuers. She claims it is important that the banks determine how to define the role for private companies such as Facebook who plan to issue their own cryptocurrencies.

The BoE is part of the six central banks which joined together in January with the aim of sharing research and findings into Central Bank Digital Currencies (CBDCs)