The Bank of England and the Treasury are now working on a proposal for how the digital pound would work, which they plan to publish later this year. The United Kingdom is pushing ahead with plans to create a digital pound that would offer a stable alternative to bitcoin or ether.
The central bank and the UK Treasury said Monday that an official digital currency is “likely to be needed in the future.”
“While cash is here to stay, a digital pound issued and backed by the Bank of England could be a new way to pay that’s trusted, accessible and easy to use,” UK finance minister Jeremy Hunt said in a statement.
The Bank of England and the Treasury are now working on a proposal for how the digital pound would work, which they plan to publish later this year.
The Bank of England and the Treasury said the decision about whether to roll out a digital pound, which has been nicknamed “Britcoin,” would be made around the middle of the decade.
Central banks around the world are considering whether to issue digital currencies as more parts of the economy move online. Unlike cryptocurrencies that are currently available, these coins would have official backing, which would result in a stable value and mean they could be used for everyday spending.
The Bank of England and the Treasury announced that they will be making a decision around the middle of the decade whether or not to roll out a digital pound, nicknamed “Britcoin.” Central banks around the world are currently considering issuing digital currencies, as more parts of the economy move online.
Unlike cryptocurrencies that are currently available, these coins would have official backing, resulting in a more stable value.
Central bank digital currencies, or CBDCs, are digital versions of traditional fiat currencies, like the dollar or pound, that are issued by central banks.
CBDCs could make online spending more convenient, ease cross-border transactions and boost competition among providers of digital financial assets. In a speech in November, Sir Jon Cunliffe, deputy governor of the Bank of England for financial stability, said that without a digital pound, a few big players could “dominate and perhaps control innovation in payment services.
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