Britcoin, UK plans its own digital currency

London is studying how to adopt an official digital currency that would corner the pound sterling. A working group of experts has been formed between the Bank of England and the Treasury

the United kingdom Added to the list of authorities that studied one digital currency central bank “This is London’s definition of the hypothesis Bitcoin The new currency that could surround the current currency in the face of His Majesty has already been renamed. As has been shown so far, Bank of England It will establish a digital equivalent of physical money, controlling it in the same way as the pound sterling. Created by experts from the central body, which has always expressed itself with serious warnings against bitcoin and the like Dedicated work team With Treasury technicians, to prepare a report on Bitcoin by the end of the year.

Among the standard holders there are Treasurer Rishi Sunak. Apparently, his department will be most interested, with the intention of regulating investments and payments in cryptocurrencies, accepted, for example, Companies like Lush and WeWork. According to the backers, Bitcoin will secure a series of benefits for citizens and small and medium-sized businesses. First, you will cut a file banking operations costs, Collapse Money Transfer Times within the system. Furthermore, it will allow the state to transfer Bitcoin to citizens’ accounts, if subsidized Helicopter money., according to daily Mail.

And observers who are more skeptical fear more financial instability The difficulty in regulating the economy with monetary policies, Like those related to interest rates. With the connection between citizens and the Bank of England via bank accounts opened directly with the central body, officials will not decide whether to apply it to Bitcoin. Moreover, the transfer less money through banks, On the other hand, this can cause an increase in mortgage rates, loans and the cost of other services provided by credit institutions.

Retailers may accept digital currency for payments otherwise made by debit or credit card. In any case, the amount of digital currency that each citizen will be able to hold will be limited initially and it will be possible to easily change it in physical pounds, even by withdrawing from an ATM. In recent months, the Bank of England’s chief economist has identified “Imaginative” idea that Bitcoin can be approved To implement normal payments. Now the UK is thinking about its own country stablecoin.