- The UK Treasury and the Bank of England plan to launch a state-backed digital pound later this decade.
- The aim is to provide the public with a safe, easy to use digital currency.
- The digital pound will be issued by the Bank of England and will have a stable value compared to traditional currency.
- The Treasury and the Bank of England will start a formal consultation for the digital pound on Tuesday.
- The Prime Minister asked the Bank of England to investigate the possibility of backing a digital currency in 2021.
Advantages of Digital Pound
- The digital pound will provide a new and trusted way to make payments.
- It will help businesses, maintain trust in money, and protect financial stability.
- If approved, there will be significant investment in launching the digital pound.
- There will be initial restrictions on how much of the currency an individual or business can hold.
How Digital Pound Works
- The digital pound will replicate the role of cash in a digital world.
- It will be accessible through digital wallets via smartphones or smartcards.
- It will have rigorous standards of privacy and data protection.
- The digital pound can be used for payments online, in stores, and to friends and family.
The digital pound is part of a larger trend of countries around the world, including the US, China, and the Eurozone, considering similar proposals.
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