Daily Management Review

Bank of England examines feasibility of issuing digital currency


The Bank of England announced a joint working group with the Treasury to examine the feasibility of issuing a UK central bank digital currency (CBDC).

The Bank of England notes that CBDC "will be a new form of digital money issued by the Bank of England for use by households and businesses. It will exist alongside cash and bank deposits without replacing them."

A Bank of England and Treasury working group will consult with businesses, experts, researchers, civil society organisations and consumers to assess the feasibility and technological advantage of issuing digital currency. Following the press conference announcing the working group, UK finance minister Rishi Sunak tweeted "Britcoin?", drawing analogies with the most popular cryptocurrency.

So far, China has already announced plans to issue its own cryptocurrency, while the EU is still looking into the matter. Last January, shortly before the COVID-19 pandemic, the Bank for International Settlements (BIS) announced a joint working group with the central banks of the EU, England, Sweden, Switzerland, Japan and Canada to assess "potential central bank digital currency use cases in their jurisdictions," including "the possibility of cross-border interactions.

source: bbc.com