The consultation document of the Bank of England and the Ministry of Finance expressed its intention to launch its own digital currency by 2025. The purpose of this step is to ensure that the country does not lag in technology in the conditions of active development of cryptocurrencies around the world.
It is noted that expanding the use of digital currencies can cause the split of England's monetary system, which can undermine the stability of the British economy and limit the ability of the Bank of England to implement monetary policy.
In this regard, the state plans to release its own digital currency, which is deliberately called Britcoin. This step aims to strengthen competition in the field of digital payments, as well as keep sterling as the main currency of the UK. It is also expected that Britcoin will be a "binder asset" between the British pound and other cryptocurrencies not related to sterling.
The value of any digital currency of the United Kingdom will be tied to the value of the British pound in transactions that will control the Bank of England. On the other hand, £ 10 can be exchanged by £ 10 in cash.
Operations will be performed through anonymous wallets in smartphones, providing privacy, similar to the one offered by other cryptocurrencies. This will contribute to a high level of public confidence in the digital pound.
"We will always guarantee that the privacy of people has a high priority in any design, and any introduction will be close, not instead of traditional cash,"-said Bim Apholam, the Economic Secretary of the Ministry of Finance.
Currently, the Ministry of Finance and the Bank of England are developing the appearance of the digital pound of the United Kingdom. The promotion of its implementation is not envisaged in the near future, according to the report, it may take several years.
The future stage of the projection is aimed at a deep study of Britcoin capabilities and its potential for facilitating and innovation in daily financial transactions for individuals and companies.
The final decision to create this digital currency by the Central Bank (CB) will be made after the end of this stage.
