News Desk
ISLAMABAD/LONDON: The United Kingdom is expected to roll out a state-backed digital currency (pound) later this decade.
Officials at the Treasury and the Bank of England said a central bank digital currency, or CBDC, unofficially dubbed “Britcoin,” could provide significant opportunities for UK consumers and businesses after it was launched as early as the second half of this decade.
The move is part of an effort by central banks around the globe to adapt to new kinds of payment that work more quickly and smoothly in online transactions. It also aims to maintain the government’s involvement in supplying money as consumers move to card payments backed by companies, not the state.
Chancellor of the Exchequer Jeremy Hunt said the CBDC could be a new “trusted and accessible” way to make payments.
However, it would not be built until at least 2025.
“We want to investigate what is possible first while always ensuring we protect financial stability,” he added.
The two institutions will start formal consultation for the digital currency on Tuesday.
Digital currency to be less volatile
Although the Britcoin issued by the Bank of England may use technology similar to cryptocurrencies such as Bitcoin and Ethereum, it would be less volatile. The Treasury said that 10 digital pounds will always have the same worth as £10 in cash rent cryptocurrencies are not backed by a central bank and their value can shoot up and down rapidly.
