According to the Treasury and the Bank of England, a state-backed digital pound will likely be introduced later this decade.
Both organizations want to guarantee that the public has access to secure, user-friendly currency in the digital era. The central-bank digital currency (CBDC) might be a new “trusted and accessible” method of payment, according to Chancellor Jeremy Hunt.
However, it will not be constructed until at least 2025. Mr. Hunt said, “We want to study what is feasible first, while always protecting financial stability.” On Tuesday, the Treasury and the Bank of England will launch an official consultation on the digital currency.
However, as tourists are aware, the value of the pound fluctuates compared to other currencies. As chancellor in 2021, Prime Minister Rishi Sunak requested that the Bank of England examine the possibility of supporting a currency.
And in October 2022, Mr. Sunak’s Minister of Financial Services, Andrew Griffith, cautioned that a protracted delay may cause economic concerns.
Cryptocurrencies are not supported by a central bank, and their value fluctuates wildly. The digital pound produced by the Bank of England may employ comparable technology to cryptocurrencies such as Bitcoin and Ethereum, but it would be less volatile. The Treasury has said that ten digital pounds would always have the same value as ten pounds in currency.
Follow Crypto Trends 360 on Twitter, Youtube, Instagram and Facebook for insights on cryptocurrencies across the world.