Britcoin? UK gets closer to launching a digital currency
- Bank of England and UK Treasury steps up work on creating a digital currency to sit alongside physical banknotes
- The digital pound would be issued by the central bank and not the private sector and its value would be fixed
Britcoin is moving closer to reality. UK authorities on Monday said British businesses and consumers are likely to need a digital version of the pound, formally asking for public comment on the idea of introducing a central bank digital currency later this decade.
Britain, home to the world’s second-biggest financial centre, is trailing former colonies such as Nigeria, the Bahamas and Jamaica in rolling out a digital currency.
More than 80 per cent of the world’s central banks are considering launching digital currencies or have already done so, according to the consultant PwC.
“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,” Treasury chief Jeremy Hunt said in a statement. “That’s why we want to investigate what is possible first, whilst always making sure we protect financial stability.”
The call for public input comes almost two years after the Treasury and Bank of England said they were considering introducing a digital currency.
While Prime Minister Rishi Sunak suggested naming the initiative “Britcoin” when he was Treasury chief, the Bank of England has stressed that the potential currency shouldn’t be confused with cryptocurrencies like bitcoin.