BRITAIN is one step closer to launching its own digital currency after the Bank of England and the Treasury joined a task force aimed at considering the feasibility of the idea.
A financial analyst hailed the news as proof that cash was “going the way of the dodo”. The Bank of England and the Treasury will jointly look at the possibility of the objectives of establishing a central bank digital currency, in terms of both the risks and the benefits.
It is a step along the path of creating an e-pound, a sort of digital banknote.
Jeremy Thomson-Cook, Chief Economist at international business payments specialist Equals Money, said: “This ‘Britcoin’ would be tied to the value of the pound to eliminate holding it as an asset from to derive profit.
“There could be an economic impact in the form of wider investment into the UK tech sector and lower transaction costs for international businesses.”
He added: “I think this legitimises the belief that cash is going the way of the dodo and that the wider payments landscape will be entirely online within the next decade apart from incidentals or quixotic spending.