The United Kingdom is planning to create a digital pound that would offer a stable alternative to bitcoin or ether. The Bank of England would be responsible for issuing the digital pound, which would be backed by physical pounds stored in its vaults. This would provide a more stable alternative to bitcoin or ether, which can be volatile in price.
Monday, the central bank and the UK Treasury jointly announced that an official digital currency is “likely to be needed in the future.” The announcement comes as the two organizations released a report on digital currencies and the potential implications they have for the UK economy.
A new way to pay that is trusted, accessible and easy to use could be a digital pound issued and backed by the Bank of England. UK finance minister Jeremy Hunt said in a statement that cash is here to stay, but we want to investigate what is possible first.
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. This would follow the successful launch of the central bank’s own cryptocurrency, the Bank of England’s “e- pound.”
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 are currently considering whether to roll out a digital pound, which has been nicknamed “Britcoin.” This would follow the successful launch of the central bank’s own cryptocurrency, the Bank of England’
In the United Kingdom, £10 worth of a digital pound would be worth £10 in cash. The Bank of England would provide the foundational public infrastructure — or a “core ledger” — while private companies would issue digital wallets that could be accessed via smartphones or smartcards.
Central bank digital currencies could make online spending more convenient, help to ease cross-border transactions and could potentially boost competition among providers of digital financial assets.
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