The United Kingdom is moving forward with plans to introduce a central bank digital currency, known as Britcoin. According to [Press Reader], UK authorities have formally asked for public comment on the idea of a digital version of the pound.
The Bank of England and the Treasury hope to launch Britcoin by 2025, at the latest. The consultation between the exchequer department and the Bank of England is expected to take around four months, followed by the design phase which could continue until 2025. A final decision on the launch of the digital currency is expected to be made during the latter half of the decade
Britcoin is likely to coexist with other forms of money, including stablecoins. The potential launch of Britcoin has been described as Britain’s first digital pound.
To avoid hoarding of Britcoin, there will be a saving limit imposed. This decision has been taken due to fears that consumers may hoard or instantly shift their wealth between accounts due to the frictionless nature of digital money.
The Bank of England has published a consultation paper on the proposed digital pound, which has been dubbed Britcoin. The 116-page paper details the Bank of England and the UK Treasury’s stance on the likely need for a digital pound and their proposed model. The UK is moving forward with its central bank digital currency (CBDC) plans.
TLDR
The United Kingdom is pushing forward with plans to launch Britcoin, a digital version of the pound. The Bank of England and the UK Treasury hope to launch Britcoin by 2025 and expect it to coexist with other forms of money, including stablecoins. To avoid hoarding of Britcoin, a saving limit will be imposed.
