Will we see the launch of a “Britcoin” from the Bank of England in the next decade? A report in the UK Telegraph newspaper hints that next week The Bank of England and Treasury will throw their weight behind a “digital pound” as they set out a roadmap to introduce a new central bank currency by 2030.
Governor of the Bank of England, Andrew Bailey and Chancellor Jeremy Hunt are expected to say it is “likely” that a new form of money will be needed as cash use continues to decline in an increasingly digital economy.
The pandemic has sped up the use of debit and credit cards as the main form of payment, while cash use has declined to around 15% of all transactions.
Central bank digital currencies (CBDC) are not new, and I predict that in under 10 years time most countries will have introduced their own CBDC.
The Bank of England already creates money digitally by issuing new reserves at commercial banks but a CBDC would theoretically allow the Bank to issue new currency digitally directly to individuals or businesses.
The report mentions that The Bank and Treasury will launch a four-month consultation in which businesses, academics and the wider public will be invited to share their views on the launch of a digital pound.
What’s your view on the potential of a Central Bank “Britcoin”?
Read the report here.