UK Authorities Considers New Digital Currency: Britcoin

UK Authorities Considers New Digital Currency: Britcoin

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Highlights

  • British authorities are investigating the chance of making new  digital currency called ‘Britcoin’
  • The bank said the new currency would be another type of advanced money for use by families and organizations and would exist close by cash and bank deposits
  • Digital currency would be advantageous as a backup to card payments if cash installments keep on dropping in the coming years. 

The Bank of England and the Treasury said that they would work as a team to evaluate the advantages of a national bank digital currency when cash installments are generally on the decrease because of the covid pandemic. 

The New Digital Currency: ‘Britcoin’ Not Bitcoin?

Advanced digital currencies which are just accessible in an electronic structure are now being explored or even executed in a few countries, with a large number drawing motivation from the achievement of Bitcoin and other so-called cryptocurrencies. However, digital currencies similar to the one being considered in the UK are different from a critical perspective to Bitcoin as they are issued by the state authority.

Britcoin' not bitcoin? UK considers digital currency
Bitcoin: Digital Currency

“We’re launching a new task force between the Treasury and the Bank of England to coordinate exploratory work on a potential central bank digital currency (CBDC),” Sunak said. He then replied with one word, “Britcoin” to the finance ministry’s task force announcement. Unlike Bitcoin, Britcoin is expected to provide greater security and less volatility along with a future alternative to card transactions if the cash payment is on a decline. 

Digital Backup : Need For The Hour

One of the chief advantages of having digital currency is that it can act as an amazing backup system if cash payments drop in the following years.  Traditional paper money is most likely to lose its usage in the upcoming 10 years, as a result of COVID-19 to some extent. It is quite probable that the transactions will be made entirely on the online scale by providing for the digital needs of the people. 

Britcoin

Currently, the Bahamas have this kind of currency all China is also using in many areas. Sweden has stated that it can have its digital currency by 2026. The European Central Bank has also mentioned that they will be creating electronic Euro in the next four years.

Conclusion

British specialists are exploring to make a new digital currency called Britcoin, which if passed, would be another type of digital money for use by families and business organizations and would exist close by cash and bank deposits.

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8 months ago

[…] Also Read UK Authorities Considers New Digital Currency: Britcoin […]