On Tuesday afternoon, the central bank of England reported that it was proceeding with its plans for a digital currency that could be used in the next few years. Jeremy Hunt, chief financial minister, said that a digital currency issued and backed by the central bank could be a new payment option that is trusted and easy to use.
Following this announcement, consultations regarding the design of the CBDC (Central Bank Digital Currency), dubbed Britcoin, will begin today. Further, Central bank Governor Andrew Bailey said issues like privacy must be considered before Britcoin is launched.
Central Bank Governor Highlights Benefits of CBDC
Bailey acknowledges that there is a need for digital currency, considering how the world around us is becoming increasingly digitalized. He adds that once Britcoin is launched, it will provide an additional payment method, enable businesses to grow, protect financial stability, and help maintain trust in money.
The central bank’s announcement outlined several fundamental principles for digital currency. The notable ones state that neither the Bank of England nor the Government would have access to personal information, private firms would access the currency via digital wallets, and there would be a limit on how much one can hold.
Also read:Bank of England revealed that a complete consultation paper regarding Britcoin will be published on its main website today, and a technical paper will be posted on Thursday. After all the papers have been made available, the central bank will open for comments for a period of four months.
Road to Britcoin
In 2021, when Rishi Sunak, the current Prime Minister, was a Chancellor, he requested the Bank of England to consider having its own CBDC. He also came up with its title, ‘Britcoin’. Since taking the top job last October, Sunak has appeared to be crypto-friendly, having requested the Royal Mint to create an NFT for Britain as part of the plans to become a crypto epicenter.
That project is advancing, although it is not yet clarified when it will be completed. On top of that, since May 2021, the Treasury and central bank have worked together to ensure the country’s vision for a digital currency becomes a reality.
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