A central bank digital currency (CBDC) is currently being explored by the Treasury and the Bank of England
In Brief:
A digital pound accessed through digital wallets and issued by the Bank of England is likely to be needed in the future, according to a new paper published by HM Treasury and the Bank of England
Central bank digital currencies (CBDCs), often seen as a state version of crypto, have long been touted as an inevitable route for government to issue for households and businesses for to use for everyday payments in the era of blockchains
While “no decision has been taken at this stage to introduce a digital currency”, the Bank of England says it is taking forward further research and development work on the idea. A consultation is being launched, with the UK public “invited to give their views” on the scheme
What does this mean?
“As the world around us and the way we pay for things becomes more digitalised, the case for a digital pound in the future continues to grow. A digital pound would provide a new way to pay, help businesses, maintain trust in money and better protect financial stability,” said Andrew Bailey, governor of the Bank of England. “However, there are a number of implications which our technical work will need to carefully consider. This consultation and the further work the Bank will now do will be the foundation for what would be a profound decision for the country on the way we use money.”
