Rishi Snack called the currency “Britcoin.”
UK households can use digital pounds to pay for goods faster as the Treasury Department and the Bank of England (BOE) have revealed plans to set up a task force to look into ideas.
Central Bank Digital Currency (CBDC) sits with cash and bank deposits, allowing you to provide an alternative way to receive and make payments.
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CBDC may be backed by blockchain technology, but according to The Times it stays in the pound and is therefore much less volatile than cryptos such as Bitcoin.
No decisions have been made to introduce a currency, but authorities are beginning to investigate the benefits.
Part of this included offering more resilient payment systems, faster payments, and government alternatives to future currencies developed by the private sector.
The task force will be co-chaired by Boe’s lieutenant governor, Ir John Kunliffe and Catherine Brazic, the Treasury Mandarin responsible for financial services, and Boe will also establish a CBDC division.
The BOE has confirmed that if a central bank digital currency is introduced, it will be derived from sterling of pounds, like banknotes. . . CBDCs are introduced together rather than replacing cash and bank deposits. ”
In a report released last month, BOE suggested that the new media will provide stability as an alternative payment for card payments.
Jason Cozens, founder of Glint, allows users to make and receive electronic payments backed by physical gold. ”
He warned that the CBDC is still tied to the country’s currency performance and “the same external factors that erode the value of our purchasing power and cash and savings.”
