London Daily

Focus on the big picture.
Monday, Jun 02, 2025

Britcoin digital pound decision to be made by 2025

Britcoin digital pound decision to be made by 2025

The Bank of England and Treasury consultation paper on a digital pound has said 'Britcoin' is "likely to be needed in the future"

A decision on whether to introduce a so-called 'Britcoin' digital pound is to be made by 2025, the Treasury has announced, as a consultation paper has found one is "likely to be needed in the future".

The creation of a digital form of the currency had been the subject of a consultation paper, published on Monday by the Treasury and the Bank of England with a decision on whether to implement a digital pound to be taken around the middle of the decade.

The decision will largely be based on future developments in money and payments, the Treasury said.

Members of the public are now being invited to give their views on the digital pound as part of research and development being done by the Bank.

A potential Britcoin would be issued by the Bank of England and not the private sector, unlike other cryptocurrencies such as Bitcoin.

Also unlike crypto the coin would have intrinsic value connected to the pound.

The Treasury said the needs of vulnerable people are being considered in the design process to ensure Britcoin would be simple to use and both understood and trusted as a form of money.

Should a digital pound be introduced the Treasury said there'd be a limit on the amount of Britcoin people can hold during an introductory phase to strike a balance between encouraging use and managing risks, the Treasury said.

Among those risks is the potential for large and rapid outflows from banking deposits into Britcoin, it added.

A digital pound would work like paper money in that it is issued and controlled by the Bank of England and would be interchangeable with cash and bank deposits.

At present digital money is only issued to banks, rather than the general public, but with a digital currency digital money can be sent without the need for a bank account.

Speaking on the Ian King Live show in June 2021, the co-chair of the Bank and Treasury taskforce, Sir Jon Cunliffe, said using Britcoin could be cheaper and easier than card transactions.

"They do offer the potential to bring down cost," he told Ian King.

The report said a 'Britcoin' could have 'far-reaching consequences'

"At the moment the average cost, I think, for a credit card transaction is about just over half a per cent, but of course if you're a small tea room in Shoreham-on-Sea, you're going to be paying more than that in some cases, well over 1% for that transaction.

"So it could be cheaper, it could be more convenient. These new forms of money offer the ability for them to be integrated more with other things through their software. So you can think of smart contracts, in which the money would be programmed to be released only when something happened. You could think, for example, of giving the children pocket money but programming the money so that it couldn't be used for sweets."

Responding to the announcement, shadow city minister Tulip Siddiq said: "We fully support the Bank of England's work exploring the potential benefits of a safe and stable, Central Bank Digital Currency."

"This is a welcome contrast to the Conservative government's promotion of the crypto wild west, which has put millions of peoples' savings at risk," she said.

"A Labour government would be serious about attracting FinTech companies to the UK, by safely harnessing the potential of new technologies and our ambition to make Britain the home-grown start-up hub of the world."

Newsletter

Related Articles

0:00
0:00
Close
Ukraine Executes Long-Range Drone Strikes on Russian Airbases
Conservative Karol Nawrocki wins Poland’s presidential election
Study Identifies Potential Radicalization Risk Among Over One Million Muslims in Germany
Good news: Annalena Baerbock Elected President of the UN General Assembly
Apple Appeals EU Law Over User Data Sharing Requirements
South Africa: "First Black Bank" Collapses after Being Looted by Owners
Poland will now withdraw from the EU migration pact after pro-Trump nationalist wins Election
"That's Disgusting, Don’t Say It Again": The Trump Joke That Made the President Boil
Trump Cancels NASA Nominee Over Democratic Donations
Paris Saint-Germain's Greatest Triumph Is Football’s Lowest Point
OnlyFans for Sale: From Lockdown Lifeline to Eight-Billion-Dollar Empire
Mayor’s Security Officer Implicated | Shocking New Details Emerge in NYC Kidnapping Case
Hegseth Warns of Potential Chinese Military Action Against Taiwan
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Jamie Dimon Warns U.S. Bond Market Faces Pressure from Rising Debt
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Taylor Swift Gains Ownership of Her First Six Albums
Bangkok Ranked World's Top City for Remote Work in 2025
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
White House Press Secretary Criticizes Harvard Funding, Advocates for Vocational Training
France to Implement Nationwide Smoking Ban in Outdoor Spaces Frequented by Children
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
U.S. Justice Department Reduces American Bar Association's Role in Judicial Nominations
U.S. Department of Energy Unveils 'Doudna' Supercomputer to Advance AI Research
U.S. SEC Dismisses Lawsuit Against Binance Amid Regulatory Shift
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
Italy Faces Population Decline Amid Youth Emigration
U.S. Goods Imports Plunge Nearly 20% Amid Tariff Disruptions
OpenAI Faces Competition from Cheaper AI Rivals
Foreign Tax Provision in U.S. Budget Bill Alarms Investors
Trump Accuses China of Violating Trade Agreement
Gerry Adams Wins Libel Case Against BBC
Russia Accuses Serbia of Supplying Arms to Ukraine
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
Chinese Woman Dies After Being Forced to Visit Bank Despite Critical Illness
President Trump Grants Full Pardons to Reality TV Stars Todd and Julie Chrisley
Texas Enacts App Store Accountability Act Mandating Age Verification
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Vatican Calls for Sustainable Tourism in 2025 Message
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
×