You are here: Home - Saving-Banking - News -

‘Britcoin’ launch to be 2025 at the earliest

0
Written by: Emma Lunn
10/11/2021
A consultation into introducing a UK central bank digital currency (CBDC) will begin next year.

Dubbed ‘Britcoin’, the cryptocurrency would be a new form of digital money issued by the Bank of England and for everyday use by households and businesses. The Bank of England said, if introduced, it would exist alongside cash and bank deposits, rather than replacing them.

Chancellor Rishi Sunak announced plans for Britcoin in April and the Bank of England and HM Treasury have now announced the next steps towards launching the cryptocurrency.

In 2022, the Treasury and the Bank of England will launch a consultation which will set out their assessment of the case for a UK CBDC, including the merits of further work to develop an operational and technology model for a UK CBDC.

It will evaluate the main issues, consider the high-level design features, possible benefits and implications for users and businesses, and considerations for further work.

This consultation will form part of a ‘research and exploration’ phase and helps to inform policy development over the next few years.

No firm decision has been made on whether to introduce a CBDC in the UK, which would be a major national infrastructure project. The 2022 consultation will lead to a decision on whether the authorities are content to move into a ‘development’ phase which will span several years.

A technical specification would follow the consultation explaining the proposed conceptual architecture for any CBDC. This could involve in-depth testing of the optimal design for, and feasibility of, a UK cryptocurrency.

The Bank of England says that if the results of this ‘development’ phase conclude that the case for CBDC is made, and that it is operationally and technologically robust, then the earliest date for launch of Britcoin “would be in the second half of the decade”.

John Glen, economic secretary to the Treasury, said: “This consultation will begin an open discussion on the role a UK central bank digital currency might play in the UK. I’d encourage everyone to contribute to the discussion so we can explore the opportunities this could bring, as well as understanding any risks it may pose.”

Jon Cunliffe, deputy governor for financial stability, said: “The plan to publish a consultation next year on CBDC is a crucial step in our policy development, especially as we further our thinking on the pressing issues at hand. What it will do is provide a platform for interested parties and relevant groups to engage with the key questions on the merits of CBDC, and whether the public sector should advance to a development phase.”

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Autumn Statement: Everything you need to know at a glance

Yesterday Chancellor Jeremy Hunt made his first fiscal statement in the role, outlining a range of tax measure...

End of Help to Buy: 10 alternatives for first-time buyers

The deadline for Help to Buy Equity Loan applications passed on 31 October. If you’re a first-time buyer who...

Moving to an energy prepayment meter: Everything you need to know

As households struggle with the soaring cost of energy, tens of thousands of billpayers are expected to move o...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week