07 Feb 2023
The Treasury and the Bank of England (BoE) have suggested that a state-backed 'digital pound' will likely be launched this decade.
Both the Treasury and the Bank said that the public should have access to 'safe' digital money that can be used easily.
A central bank digital currency (CBDC) would use similar technology to cryptocurrencies, but the digital pound would be 'less volatile', according to the BoE.
However, a CBDC system will not be built until at least 2025, the Treasury stated.
Commenting on the matter, Chancellor Jeremy Hunt said: '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.
'That's why we want to investigate what is possible first, whilst always making sure we protect financial stability.'
A consultation has been launched on how the CBDC would work.