Britcoin? UK gets closer to launching a digital currency

LONDON (AP) — Britcoin is moving closer to reality.

U.K. authorities on Monday said British businesses and consumers are likely to need a digital version of the pound, formally asking for public comment on the idea of introducing a central bank digital currency.

Britain, home to the world’s second-biggest financial center, is trailing former colonies such as Nigeria, the Bahamas and Jamaica in rolling out a digital currency. More than 80% of the world’s central banks are considering launching digital currencies or have already done so, according to the consultant PwC.

“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 trusted, accessible and easy to use,” Treasury chief Jeremy Hunt said in a statement. “That’s why we want to investigate what is possible first, whilst always making sure we protect financial stability.”

The call for public input comes almost two years after the Treasury and Bank of England said they were considering introducing a digital currency.

While Prime Minister Rishi Sunak suggested naming the initiative “Britcoin” when he was Treasury chief, the Bank of England has stressed that the potential currency shouldn’t be confused with cryptocurrencies like Bitcoin.

Backed by the central bank, the new currency would be “reliable and retain its value over time,” in contrast to cryptocurrencies that can fluctuate wildly and threaten the holdings of investors, the Bank of England says on its website.

That industry has been particularly unstable in recent months, escalating calls for greater regulation. Crypto crashes last year tanked assets, while crypto exchange FTX's multibillion-dollar collapse and bankruptcy in November triggered fraud charges against founder Sam Bankman-Fried.

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