digital pound likely this decade

According to the BBC, a digital pound is likely this decade.

Introduction

  • 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.

Consultation Process

  • 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.

Initial Restrictions

  • 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.

Conclusion

The digital pound is part of a larger trend of countries around the world, including the US, China, and the Eurozone, considering similar proposals.