The UK government is looking into the possibility of launching a new digital currency called Britcoin.
The Bank of England and the Treasury announced on Monday, April 19, that they would collaborate to evaluate the benefits of a central bank digital currency, despite claims that cash payments are on the decline, owing in part to the coronavirus pandemic.
The new currency, if it comes to pass, would be a new type of digital money for use by households and companies, rather than replacing cash and bank deposits, according to the bank.
The Bank of England said in a statement that “the Government and the Bank of England have not yet made a decision on whether to implement a CBDC in the UK, and will engage widely with stakeholders on the benefits, costs, and practicalities of doing so.”
“We’re launching a new task force between the Treasury and the Bank of England to organize exploratory work on a possible central bank digital currency (CBDC),” British finance minister Rishi Suna said at the financial industry conference.
“Our vision is for a more flexible, greener, and more technologically advanced financial services market,” he told a fintech conference.
“We’ll cement the UK’s status as the world’s preeminent financial center if we can harness the extraordinary potential of technology.”
Sunak responded to the finance ministry’s announcement of the task force by tweeting the word “Bitcoin.”