The deputy governor for monetary policy at the Bank of England (BOE), Ben Broadbent, stated that the digital pound could bring big opportunities to financial institutions, businesses, and individuals.
Broadbent shared his thoughts on a possible central bank digital currency (CBDC) while speaking at the start of a BOE research conference.
The top BOE official said new products and services powered by emerging technologies like blockchain are adopted rapidly at a large scale, representing a big opportunity.
- Broadbent also pointed out that the U.K.’s central bank is paying the keenest attention to a possible digital pound, focusing on its regulatory implications.
- He added that they expect further improvements in the digital pound to cause less friction and lower payment costs.
- On Feb. 7, BOE announced its plans to explore potential use cases of a CBDC, or a digital pound backed by the state, in collaboration with the U.K. Treasury.
- The nation’s financial agencies will receive feedback for improving the digital pound until June 7 and then start designing the CBDC.
The digital pound, dubbed Britcoin, will be built on a private blockchain and operate similarly to other cryptocurrencies.
- The agencies will also launch a digital wallet along with Britcoin to allow customers to spend their funds easily.
- Recent data shows that just 15% of transactions were made in cash as of 2021 in the U.K.
