UK economy minister: Digital pound will not replace cash
The Bank of England and the Treasury are preparing a plan to create a national digital currency that could provide a new way to pay without having to replace cash.
According to Wallex and quoted by Coin Telegraph, yesterday, February 7, a joint article by the Bank of England and the Treasury Department on Central Bank Digital Currencies (CBDC) was supposed to be published. These two entities are looking for feedback on how to continue advancing the national digital currency project – digital pound.
UK Economy Secretary Jeremy Hunt acknowledged in a public statement on February 6 that the two institutions are looking to develop a modern digital payment system that does not hinder the continued use of cash. Hunt said:
Cash is not going anywhere, the digital pound issued by the central bank could be a new method of payment that is safe, easy and reliable. We always do feasibility studies first and will try to protect financial stability.
Another major area of focus is providing a government-backed alternative to stablecoins. Central bank and Treasury officials expect big tech companies to develop something like this in the coming years.
In part of this statement, Andrew Bailey, the head of the Bank of England, said:
The digital pound is a new way to pay, help businesses, maintain trust in money and better protect financial stability. However, there are a few implications that must be carefully considered in our technical snake. This consultation and the next set of activities that the central bank will do will be the basis of the country’s decision to determine how to use the money.
John Cunliffe, the deputy governor of the Bank of England, is scheduled to give a speech on February 7 about the activities carried out regarding the national digital currency.
In April 2021, the current Prime Minister and former Chancellor of the Exchequer, Rishi Sunak, instructed the Central Bank and the Treasury to work together on the possible formation of a digital pound.
Despite the fact that the activities of these two institutions seem to have been very cautious in this regard so far, however, in early February, the Treasury published a job advertisement for the recruitment of the manager of the payment and fintech department on the LinkedIn platform.
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