Britcoin will be launched by 2030
The Bank of England has begun recruiting staff responsible for the development of Central Bank Digital Currency (CBDC), indicating that the bank is taking the issue seriously. In February, the Bank of England published a report on digital currency, but did not include a date for its introduction. It is expected that Britcoin, as the Bank of England is calling its CBDC, will be launched by 2030.
So, what is CBDC? CBDC stands for Central Bank Digital Currency, which means it is a digital currency issued by a central bank and made available for public and business use. This form of payment is intended to coexist with cash as an additional form of payment. But how does it differ from regular currency?
Digital currency is a new form of payment that allows for more efficient and cheaper payments. The digital version of currency also allows central banks to monitor money in circulation in real-time.
Currently, the Bank of England is referring to its currency as the “digital pound” or Britcoin. Both the government and the central bank believe that such a currency will be necessary in the near future, and as a result, a department responsible for the entire project has been set up.
If all goes according to plan, the cryptocurrency could bring many benefits to the UK. Currently, payment networks lose control over their customers’ payments, but with CBDC, all settlements will go exclusively through the Bank of England.
The UK is just one of many countries deciding to introduce a digital currency. On April 11th, the Central Bank of Montenegro signed an agreement with Ripple, a well-known cryptocurrency company. So far, CBDC has been launched in the Bahamas, Jamaica, and Nigeria, but more countries are working on similar projects. According to reports from PKO BP Bank, 62 central banks were working on the adoption and implications of CBDC a year ago.
What is “digital pound”?
The “digital pound” refers to the possibility of creating a digital version of the UK’s currency, the pound sterling. It would be a digital currency issued by the Bank of England and would operate alongside physical cash and existing electronic payment methods such as credit and debit cards.
The idea of a digital pound is not a new concept, as many countries are exploring the possibility of central bank digital currencies (CBDCs). A CBDC is a digital version of a country’s currency that is backed by the central bank and has the same value as physical cash.
A digital pound could have several benefits, such as making payments faster, cheaper, and more secure. It could also increase financial inclusion for those who do not have access to traditional banking services, as digital wallets could be accessed through smartphones.
However, there are also concerns about the potential risks of a digital pound, such as the potential for cyber attacks and the need for privacy protections. There are also concerns about the impact on traditional banking services and the potential for a digital pound to undermine financial stability.
Overall, the idea of a digital pound is still in the early stages of development and would require careful consideration and planning before implementation. The Bank of England is currently exploring the idea and has not yet made a decision on whether to proceed with a digital pound.
