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'Britcoin' - UK Considering New Digital Currency
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New Digital Currency Proposal
The government is exploring the idea of creating a new digital currency. UK Chancellor of the Exchequer Rishi Sunak proposed the idea of ‘Britcoin’, a new form of currency that would be used alongside cash and bank accounts.
He said:
"We're launching a new taskforce between the Treasury and the Bank of England to coordinate exploratory work on a potential central bank digital currency (CBDC)."
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Unlike cryptocurrencies like Bitcoin, digital currencies backed by central banks as well as issued and regulated by the government and could act as a backup to card payments. The growing interest in digital markets sparked the idea.
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The Bank of England stated that:
"The Government and the Bank of England have not yet made a decision on whether to introduce a CBDC in the UK, and will engage widely with stakeholders on the benefits, risks and practicalities of doing so".
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