Britcoin, a “digital pound” sponsored by the British government, could be introduced by the end of the 2020s. The news comes after the Bank of England and the Exchequer Ministry laid out a plan to launch a new digital currency in the United Kingdom. According to financial experts reported in the British press, a digital pound issued by the Bank of England is “likely to be needed in the future” due to the evolving use of currency and cards in Europe and throughout the world.
“While cash is here to stay, a digital pound issued and backed by the Bank of England could be a new way to pay that’s trusted, accessible, and easy to use,” Jeremy Hunt, Chancellor of Exchequer said in an official statement.
“That’s why we want to investigate what is possible first, whilst always making sure we protect financial stability,” Hunt added.
The Bank of England will conduct additional research and development, and members of the British public will be invited to participate in the consultation process.
New digital currency will not dramatically alter nature of currency exchange
According to The Independent, the Bank of England and the Treasury believe the currency will not significantly affect how British people use money, but that it would help “ensure the public have access to safe money that is convenient to use as our everyday lives become more digital.”
Britcoin: The timeline for potential rollout
The dialogue between the Treasury and the Bank of England is expected to last four months. Britcoin’s design phase is expected to last until at least 2025, at which point a final choice could be reached. The launch of digital currency may reportedly occur during the latter half of the current decade.
“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,” Andrew Bailey, Governor of the Bank of England, was quoted as saying by The Independent.
“A digital pound would provide a new way to pay, help businesses, maintain trust in money, and better protect financial stability,” he added.
Similar suggestions are being considered by countries around the world, including the United States, India, China, and the Eurozone.
