British consumers may be using a new digital currency called “Britcoin” as an alternative to cash by the end of the decade, according to the Bank of England (BoE) and the Treasury.
Given the volatility of cryptocurrency markets and the collapse of crypto company FTX, the central bank and the Treasury will need to reassure citizens and convince them that the British digital currency will be as safe as cash.
Regulators will study the technical requirements for creating a central bank-controlled digital currency (CBDC) before making their final decisions in the middle of this decade.
Treasury Secretary Jeremy Hunt and central banker Andrew Bailey may, in fact, decide not to move forward with the next steps of the plan, but momentum is seen as high at the moment, according to The Guardian.
According to a recent analysis by these regulators, the creation of a digital currency is seen as a necessary step for the future of the British economy.
If the whole effort is given the green light, digital currency could enter consumers’ lives at the earliest by the end of the decade.
“The world around us is changing and the way we transact is becoming increasingly digital. The need for a digital pound is now seen as necessary as it will help companies, strengthen the financial system and stabilize the country’s financial environment,” Bailey said, adding that:
“There are, however, a number of problems that we will have to address. The BoE will do the necessary studies before proceeding to make decisions that will fundamentally change the way we use money.”