The UK is taking the next step in exploring a potential digital pound, with the Bank of England and the Treasury inviting public input on plans for a digital euro.
The move comes as more countries worldwide look to launch their digital currencies, as traditional payment methods are becoming increasingly outdated. The Bank of England and the Treasury have said that they are looking into creating a “digital pound” that could be used for payments and purchases.
The Bank of England has stated that it believes a digital currency could provide an efficient and secure way for people to make payments and access financial services. It could also offer an alternative to existing payment methods, such as cash or card payments, which can be slow and expensive.
In its invitation for public input, the Bank of England noted that “the development of a digital currency is likely to be needed to ensure that the UK continues to benefit from an innovative and competitive payment system”. It added that any new system must meet specific criteria such as being secure, resilient, fast, user-friendly, low-cost and accessible.
The Bank of England has asked members of the public to submit their views on how a digital pound should work and what features it should have. The Bank of England will then use this feedback to inform its plans for developing a digital currency in the UK.
It is unclear when a digital pound may become available, but it is an essential step towards modernising payment systems in Britain. The Bank of England will continue to consult with stakeholders before launching a digital currency in the UK.