UK Treasury and Bank of England Exploring Digital Currency Potential–Task Force Launched

The Bank of England (Central Bank of England) and the UK Treasury have announced that they will consider creating a digital currency issued by the Central Bank. The UK is now one of the new countries to consider issuing digital currencies by central banks.UK Finance Minister Rishi Sunak said, “Britcoin?” When the task force to consider the Central Bank Digital Currency (CBDC) was announced.Tweeted.. The CBDC is a relatively new type of digital currency, but it is not as decentralized as Bitcoin and is not a replacement for retail banks. In addition, it is a currency issued by the central authority, and anonymity is not always guaranteed like cash. China is at the forefront of this field with the CBDC “Digital RMB” and began research in 2014. The Bank of England states that the CBDC is “digital money issued by the Bank of England and available to the general public and businesses” and does not replace or coexist with cash or bank deposits. However, the Bank of England seems to be only considering regulatory issues in introducing digital currencies. “The government and the Bank of England have not yet decided whether to introduce the CBDC in the UK and will continue to exchange views with a wide range of stakeholders on benefits, risks, feasibility, etc.” .. The Bank of England and the UK Treasury have set up a task force to examine the role that relevant agencies will play when the digital sovereign currency, the CBDC, is actually introduced. Since CBDC is a currency backed by a central bank, it is unlikely that large price fluctuations such as those experienced by virtual currencies (cryptographic assets) such as Bitcoin will occur. The National Bank of Sweden has begun a project in 2017 to explore “e-krona” as a means of coping with the decline in cash use in the country. But this is just the beginning. Bloomberg reported last week that the Swedish National Bank is considering introducing the CBDC within five years. The UK Task Force will “compile a survey of the objectives, use cases, opportunities and risks of implementing the UK CBDC.” In addition, the company will conduct a survey on use cases in the UK and listen to international trends in the CBDC.