Representatives of the Bank of England (BoE) and the government insist that the digital pound (e-GBP) should in no way affect the stability of the banking system or the availability of cash in the country. Therefore, the final decision to issue a public digital currency (CBDC) will be taken only after more discussion and experimentation.
His Majesty’s Chancellor of the Exchequer, Jeremy Hunt, confirmed that the government supported the development as part of the BoE’s digital currency issue. However, a final decision on issuing the CBDC can’t be made yet. This is reported by Bloomberg.
According to Hunt, the digital pound, which has been unofficially named Britcoin, is intended to expand opportunities for British consumers and businesses rather than replace cash. But authorities are still concerned about the CBDC’s potential impact on financial stability.
In this regard, the Bank of England plans to conduct a number of extensive studies before the development of the digital pound. Therefore, the CBDC pilot project won’t be launched before 2025. Andrew Bailey, Governor of the BoE, said that the bank would consider all possible implications of the CBDC issue for the banking system’s stability, including privacy matters.
The Bank of England is also prepared to hold public discussions on the regulator’s plans to issue the digital currency. According to Jeremy Hunt, representatives of the country’s financial sector should be confident that Britcoin will be “a trusted, accessible and easy to use” way to pay.
The other day, it became known that the British government recognized the need to release the digital pound. However, representatives of the country’s financial sector expressed concern about possible threats to the stability of the banking system.
