The Bank of England (BoE) and Treasury believes the United Kingdom is likely to need to create a central bank digital currency (CBDC) by 2030, according to a Telegraph report on Feb. 4.
The “digital pound” roadmap is set to be introduced next week, a government source told the newspaper. Deputy Governor Jon Cunliffe is scheduled to give an update on the BoE’s work on the CDBC on Feb. 7
“On the basis of our work to date, the Bank of England and HM Treasury judge that it is likely a digital pound will be needed in the future,” noted Governor Andrew Bailey and finance minister Jeremy Hunt to the Telegraph.
The BoE declined to comment on the article, but announced that a joint consultation on the digital pound would be released soon.
The UK reportedly experienced a 35% drop in cash and coin payments in 2020. Cash accounts for approximately one in six payments; debit and credit cards account for the other five. A central bank digital currency is a digital version of fiat currency, tied to fiat reserves at a 1:1 ratio, allowing citizens and businesses to manage funds far more…
