A state-backed “digital pound” could be launched later this decade as the Bank of England and Treasury set out a road map to potentially introduce a new central bank currency. The Bank and the Government will formally start a consultation for the digital currency today (February 7).
The bodies said that a digital pound, which would be issued by the Bank of England, is “likely to be needed in the future” as use of cash and cards continues to change. Nevertheless, the consultation and research process does not mean the central bank digital currency (CBDC) will definitely be issued, with the decision due to take place at a later stage.
It comes after years of speculation that the currency could be considered amid the rapid growth of new digital financial formats, such as cryptocurrencies and stablecoins. The Treasury has stressed that the potential currency is not a cryptoasset, which are privately backed investments.
