• Jonathan Shiek

‘Britcoin’ Might Be The New Currency in the UK

In perhaps one of the more shocking crypto news to hit the headlines today, UK Chancellor of the Exchequer Rishi Sunak announced that there will be a possibility that the UK will be introducing a digital currency into their financial system.

In the announcement, he also said that he is in the midst of assembling a joint task force between the country’s Treasury and the Bank of England (BoE) that will begin exploring the idea of introducing said currency into the financial system which will be backed by the central bank.

By introducing such currency, businesses and consumers will be able to bypass commercial banks when they need to make payments while also holding accounts directly with the central bank. That said, the UK government and the BoE has not collectively decided if they should introduce a CBDC (Central Bank Digital Currency) in the country. Their decision will be based on the findings of the taskforce.

Should the digital currency be implemented, it will not be replacing cash and bank deposits, and will merely serve as an additional option alongside more traditional forms of financial amenities. That said, it clearly didn’t stop Rishi from tweeting:

Britcoin? #UKFW21 — Rishi Sunak (@RishiSunak) April 19, 2021

In addition, one of the more interesting aspects of this announcement is perhaps the fact that the BoE’s Governor Andrew Bailey is clearly not a fan of digital currency which he openly admits given his previous criticism of bitcoin, where he said that it was an unstable store of value and an inefficient way to make transactions.

The UK is by no means the only country that is experimenting with digital currency as China and Sweden are also experimenting with it.



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