UK Treasury Secretary (BoE) and Treasury Department said Monday (04/19/2021) that they will work together to assess the benefits of the central bank’s digital currency, British Treasury Secretary Rishi Sunak said. Payments are generally declining as a result of the Coronavirus pandemic.
The bank said that the new currency, if ever produced, would be a new form of digital money for households and businesses to use, and would live with cash and bank deposits, rather than replacing them.
Did they come to stay?
Cryptocurrencies are being studied or even applied in other countries, thanks in large part to the success of those who prefer inspired by the success of currencies such as Bitcoin and other cryptocurrencies.
However, digital currencies, such as the one under study in the United Kingdom, are fundamentally different from Bitcoin because they are issued by state authorities.
Anne Bowden, founder and CEO of Starling Bank, said the world is on the path of digital currencies and we have to find a place for them in the mainstream.
One of the advantages of digital currency is to support card payments if cash payments continue to decline in the coming years.
By the end of this decade, it is expected that only one in ten payments in the UK will be made using traditional paper money. Likewise, those who prefer this format also consider it an alternative to online shopping.
Currently, only the Bahamas have such a currency, although China is testing it in several cities. Sweden indicated that it could have its own digital currency in 2026, while the European Central Bank indicated that an electronic euro could be created within four years.
The new UK task force is part of a series of actions Sunak hopes will help the UK’s fintech sector.
Our vision is a more technologically advanced, greener and open financial services sector, he said at a fintech conference. “If we can harness the extraordinary potential of technology, we will cement the UK’s position as the center. The most important financial institution in the world.”
E (AP / Forbes / Reuters)