British finance minister Rishi Sunak revealed that UK is considering launching a new “Britcoin” – central bank-backed digital currency
According to a report by the British Finance Minister, Rishi Sunak, they are considering issuing a new CBDC, titled “Britcoin”. Note that this is “Britcoin” – a digital currency backed by the Bank of England, born to solve some of the challenges posed by cryptocurrencies like Bitcoin.
Britain’s Chancellor of the Exchequer (finance minister) Rishi Sunak
What is Britcoin?
Britcoin is a BoE-backed digital version of sterling that would potentially allow businesses and consumers to hold accounts directly with the bank and to sidestep others when making payments, upending the lenders’ role in the financial system.
The UK considers new digital currency
Sunak said in a financial industry conference the following:
“We’re launching a new task force between the Treasury and the Bank of England to coordinate exploratory work on a potential central bank digital currency (CBDC).”
Soon after, Sunak tweeted a single word “Britcoin” in response to the finance ministry’s announcement about the task force. Other central banks are also considering whether to set up digital versions of their own currencies, essentially extending access to central bank funds that are currently only new commercial banks can use. This can speed up domestic and foreign payments and reduce the risk of financial stability.
BoE says a digital version of the pound will not replace existing physical cash or bank accounts:
“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.”
According to BoE governor Andrew Bailey, Bitcoin is either a stable store of value or an efficient way to execute transactions, making it unsuitable to serve as a currency and a risky bet. for investors. Central banks also have a lackluster view of Facebook’s efforts to establish its own digital currency.
Even so, Bitcoin has received growing interest from mainstream financial institutions and bitcoin hit a record high of nearly $ 65,000 on April 14, a 10-fold increase within a year.
You can see the BTC price here.
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