How a digital pound could work alongside cryptocurrencies
Like many other countries, the UK has developed a plan for a central bank digital currency (CBDC). A digital pound would essentially act like an online form of cash suitable for everyday payments.
It would not earn any interest like a standard savings account (or even some current accounts), but it could increase access to financial services in the UK.
The Bank of England recently proposed a general framework for how a digital pound would work. It has suggested an ambitious timeline for introducing one by 2025.
You have until June 7 2023 to tell the bank what you think of its plan. The success of a UK CBDC will largely depend on whether the benefits of offering a digital currency outweigh the costs of creating and rolling out the infrastructure needed to support the new payment system.
