The Bank of England and the Treasury have stressed the need for a digital pound, influencing the launch of Britcoin in 2025.
With the release of a consultation paper by the Bank of England and the Treasury on the digital pound, it has become clear that the UK is serious about introducing its own digital currency. Earlier, Prime Minister Rishi Sunak had termed the digital pound as ‘Britcoin,’ while the same is set to become a reality soon in 2025 with the launch of Britcoin.
Research and development are currently undergoing for the digital pound, for which the Treasury has also invited views from the general public. The digital pound will be backed by the pound and will not be a private stablecoin. The authorities would maintain a balance between using the digital pound and maintaining risks, limiting the withdrawals of Britcoin.
Sir Jon Cunliffe, the co-chair of the Bank and Treasury taskforce, said, “So it could be cheaper, it could be more convenient. These new forms of money offer the ability for them to be integrated more with other things through their software. So you can think of smart contracts, in which the money would be programmed to be released only when something happens”, referring to how the digital currency could increase efficiency for its holders.
Other officials in the UK have also welcomed an early launch of Britcoin, terming its presence to unlock the benefits of a safe and stable digital currency. The launch of Britcoin could also make the UK a friendlier region for blockchain and web3 firms, with more clarity on regulations.