Investing.com - The Bank of England (BOE) is exploring the possibility of creating a digital pound, tentatively dubbed "Britcoin," as an alternative to traditional banknotes. This proposed cash-like instrument would function similarly to physical cash while maintaining its value without accruing interest or attracting speculators.
To determine if such a central bank digital currency (CBDC) can be successfully implemented and whether it makes sense for the nation, the BOE has been soliciting input from British citizens. The submission period began on February 7th and concludes this week on June 30th. Following this phase, the BOE will assess all received feedback before spending several years examining technological and policy requirements necessary for implementing a CBDC.
Tom Mutton leads these efforts as head of the BOE's CBDC project. In an interview with reporter Emily Nicolle featured on Merryn Talks Money podcast, Mutton discussed details about the potential development process behind Britcoin. Nicolle joined hosts Merryn Somerset Webb and Senior Reporter John Stepek to provide further insight into what exactly constitutes a CBDC, why it may hold value for both consumers and institutions alike, and how privacy concerns are being addressed during this evaluation stage.
As nations around the world continue debating over adopting their own digital currencies alongside existing financial systems, Britain looks forward to determining whether Britcoin could become a reality in its quest towards modernizing national currency options.