Bank of England Mulls Digital Currency

The Bank of England (BoE) has stated that the United Kingdom might need to create a Central Bank Digital Currency (CBDC) by 2030 which will create a way for “digital pounds”.

According to a report by Daily Telegraph, the roadmap to a “digital pound” will be launched this week. 

Claiming a government source, the newspaper reported that His Majesty’s Treasury also has shown interest in the digital currency while the Deputy Governor of Bank of England, Jon Cunliffe is scheduled to give an update on the development on Tuesday. 

Investors King understands that this new development is coming just a few days after His Majesty Treasury posted an open position on LinkdIn for a head of Central Bank Digital Currency. The job description described the role as Important, Complex and Cross Cutting. 

The United Kingdom will be joining China, Brazil, Nigeria and other countries that have launched a digital currency if the Bank of England successfully launched a digital pound. 

Similarly, the European Central Bank has been discussing the prospect of a digital euro while a few other countries in Asia and South America are also keen on the option of a digital currency. The United States is also reported to be planning a digital dollar in the near future. 

What to know About Digital Pound 

A digital pound will be issued by the Bank of England. It will have the same value as the physical pound. For example, 20 pounds of a UK digital currency would always be worth the same as a £20 note.

The issuing of a digital pound will not stop the issuing or usage of physical notes as users will decide the way they choose to pay for goods and services.

A digital currency or digital pound is however different from a cryptocurrency which value can increase and decrease. Cryptocurrencies are privately issued digital assets, unlike a Central Bank Digital Currency that is issued by the central bank.