‘Britcoin’ Lays Groundwork For UK’s Digital Pound
Britain is moving forward with plans for a digital pound that could be in use by the late 2020s, according to the country’s Treasury and central bank.
“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,” the UK’s chief financial minister Jeremy Hunt said in a statement.
The Bank of England has today launched a new consultation on the design of a central bank digital currency in response to the announcement (CBDC). Before launching a digital pound, Bank of England Governor Andrew Bailey stated that issues such as privacy would need to be addressed.
According to a survey, British citizens are sceptical of central bank digital currencies.
The British public does not believe in central bank digital currencies, according to a survey of 2,500 UK adults conducted this month for POLITICO by Redfield & Wilton Strategies.
While the project’s details are still being worked out, the announcement outlined the principles that will serve as the foundation for any digital pound.
Personal data would not be accessible to the government or the Bank of England under current plans. Access to the currency would be handled by the private sector via digital wallets, with initial limits on how much an individual or business could hold.
A spokesperson confirmed that the full consultation paper will be published on the Bank of England website on Tuesday at an unspecified time. At the same time, a technical paper will be published.
(With inputs from Shikha Singh)
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