UK says digital pound will not be a crypto as consultation period begins
Feb. 7, 2023 at 10:01 pm
By Mike Dalton
However, the project's core ledger could be built on blockchain or DLT.
The U.K. initiated the consultation period for its digital pound today and said that the asset will not be a cryptocurrency, as seen in a Feb. 7 statement.
Jeremy Hunt, Chancellor of the Exchequer, said:
“While cash is here to stay, a digital pound issued and backed by the Bank of England could be a new way to pay … That’s why we want to investigate what is possible first, whilst always making sure we protect financial stability.”
Any future digital pound would be meant for use in personal and business transactions. It would be interchangeable with cash and bank deposits.
The U.K. government noted that a digital pound would be a central bank digital currency (CBDC). It distinguished CBDCs from cryptocurrencies and stablecoins, noting that any digital pound would be issued by the Bank of England rather than the private sector. It also said that a digital pound would match the price of GBP and avoid the price volatility of unbacked cryptocurrencies such as Bitcoin.
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