A digital pound could soon be a reality as the Bank of England is currently exploring its practicalities, benefits, and risks.
- BOE is yet to make a decision if it will introduce a digital pound, termed as “Britcoin” and current hints seek to obtain views on the intended move.
- The central bank would collaborate with the UK’s Treasury to iron out public-policy concerns around the digital pound.
- Interest in central bank-led digital currencies has been growing, with China already testing the digital Yuan
- U.S Fed is also planning to obtain feedback on a digital version of the currency
- BOE expects a digital version of the pound to innovate the payment system, but also test the financial system and the economy in general.
- BOE expects a digital pound to complement, but not replace banknotes.
BOE estimates that about 20% of retail money deposits in the U.K will be in digital form
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Source: Markets Insider