The Bank of England has announced this week that a centralised digital currency will launch in the UK by 2025 “at least”.
The bank said it was advancing its exploration of the centralised digital currency (CBDC), or “stablecoins”, to a consultation stage that will occur next year.
The proposed currency, which has been dubbed “Britcoin” won’t arrive in the UK until its found to be ““operationally and technologically robust.”
“Everything we do in this space has to solve a real problem,” Starling Bank chief executive told CNBC.
“It has to have uptake and needs to be ubiquitous enough in order to provide some real value.”
Cryptocurrencies are back on the up after Bitcoin hit a new record high of $69,044 this week, prompting central banks’ to reconsider the viability of stablecoins.
Most projects have moved at a slow pace however, with Sweden’s digital Krona set to be the first to be introduced in Europe, by 2026.
Beijing however is steaming ahead with a central digitalised currency, rolling out the digital yuan in trials across a number of provinces.
Experts estimate the People’s Bank of China is likely to be the first to fully launch a CBDC.
There are a number of concerns surrounding the PBOC’s digital yuan however, with many critics believing it is too centralised and will be used as a tool to boost government surveillance.