A central bank digital currency of the sterling pound (CBDC) in the UK was as inevitable as rain on a cloudy day. The United Kingdom joins the ranks of dozens of developed nations around the word that are considering the prospects of a CBDC. An announcement made this Monday by Rishi Sunak, Chancellor of the Exchequer, revealed that a task force by the Bank of England and the HM Treasury was set in motion for developing a potential CBDC.
UK authorities specified that the cash-based economy will not be affected by the integration of a CBDC, but this claim only time can verify.
The plan to develop a CBDC is considered as the next big step by the nation to combat the threat of online cryptocurrency scams. The name “Britcoin” even started circulating the net after Sunak tweeted it on his account. The deeper mission of Britcoin is to drag the UK out of the impact that Brexit has caused and will continue to cause.
Despite all of this, the British bank did clarify that there is currently no decision made on introducing a CBDC. Instead, the task force aims to go through the pros and cons of a centralized digital sterling pound with a important stakeholders.
Currently, it’s China that has has done the most work where a CBDC is concerned. Meanwhile, many institutions are also considering launching their own respective CBDCs.