The United Kingdom looks to be on the verge of joining the CBDC bandwagon, with the Treasury forming a task team to investigate CBDC.
New tales regarding central bank digital currencies (CBDCs) continue to circulate, and the United Kingdom looks to be on the verge of joining the CBDC bandwagon this week. Insiders at the U.K. Treasury have revealed the formation of a task group to investigate how the CBDC, nicknamed “Britcoin” by others, may operate. By the end of the year, the task committee will present its findings to Chancellor Rishi Sunak.
The United Kingdom is considering a CBDC.
According to the people who leaked the information to the Daily Mail, treasury members are more enthusiastic about the government’s proposal than bankers. Within the British government, there is both resistance and excitement for this digital money initiative. Some people see the obvious advantages of completely digital money. Some decision-makers are optimistic about the possibilities of a digital Pound Sterling, citing faster transfers, the central bank’s capacity to distribute “helicopter money,” decreased friction and costs for small companies, and the largest modernization of the British financial system in centuries.
Central banks are investigating CBDCs all around the world.
The CBDC initiative in the United Kingdom is not well-documented. However, like most other CBDCs, it will very certainly need to be stored and used in a digital wallet. Given the recent political dispute over the possible issuing of vaccination passports in the United Kingdom, it’s uncertain how eager the British public would embrace a digital wallet if the government granted it. Any wallet associated with digital I.D.s might exacerbate already simmering political tensions. When it comes to digital currencies, citizen privacy has been a key source of worry. CBDCs are being investigated by several countries, including the United States, Canada, Russia, and others.