Statement on 'Britcoin' from the UK! Is a digital pound coming?

The Bank of England (BoE) has published a consultation paper on a project for an official, central bank-backed electronic currency called the "digital pound."

The report is the result of a study conducted in conjunction with the UK Treasury. In a statement on Monday, the central bank and the UK Treasury said that an official digital currency would 'likely be needed in the future.'

The report pointed to the trust in cash in the markets: "Cash is issued directly by the Bank of England and is therefore trusted."

The report emphasized the critical role currencies play in daily life and the importance of the trust placed in them. It was stated that as the UK's economy rapidly digitizes, citizens' use of cash is gradually declining. However, the report noted that cash remains important for many people and sits at the heart of the economy. 

The phrase, 'Cash is issued directly by the Bank of England and is therefore trusted,' was included in the report.

The report also states that the UK government and the BoE have not yet made a definitive decision on the launch of a digital pound. Information was shared stating, 'We are exploring the idea of a 'digital pound' as part of our work on the future of money and payments. This would be a digital complement to our existing banknotes, but it would not replace cash.'

The report emphasizes that it is important to protect consumers' personal preferences regarding how they use their money. The use of the digital pound will be left to the choice of citizens.

The UK, which is accelerating its work on the digital pound, has not yet reached a final decision on whether this currency will be put into circulation. The Bank of England and the Treasury are now preparing to make plans for what the UK's digital pound might look like, although there is no plan to start building it just yet. The report indicates that the launch of any digital pound could take several years.