The UK Treasury Department and the Bank of England have just announced they intend to hold a public discussion on the potential launch of a digital version of the pound sterling in 2022.
The central bank digital currency (CBDC) would become a new form of money for everyday transactions by citizens and businesses, but not a full-fledged replacement for cash and bank deposits.
As part of the consultation, it is planned to explore the advantages of the digital pound and its technological model. Officials will explore use cases, key issues as well as possible implications of the implementation of the CBDC for businesses and individuals.
Taking into account the findings, the country will develop a policy for the next few years. In particular, this involves the development of the concept, the technical characteristics of the digital pound and its in-depth testing.
The central bank of England has stressed the final decision on the potential release of the CBDC has not yet been made. If it is eventually approved, the authorities will move on to a development phase that will last for several years.