The United Kingdom is considering creating its own digital currency

The UK government It will not stand idly by the news that many countries, such as China, and even entire regions, such as the European Union, are preparing to launch their own virtual currency. A study of the launch of a British digital currency. A) Yes They confirmed it The Bank of England And the Her Majesty’s TreasuryIt is a British government ministry charged with developing and implementing its economic and financial policies.

Both organizations confirmed that they would jointly explore ”new way»Virtual money for both the general public and the private sector. For this they have created a specific working group, which will be responsible for assessing the risks and functions related to launching a digital currency.

In order to help find new use cases for this, those responsible for this work will consult with various assets in the financial world, including banks, fintech, payment infrastructure providers and technology companies. Of course, at the moment the UK is only conducting an investigation and has not pledged to take any concrete action.

It will also cover the new working group Monitor the development of international digital currencies. It’s a necessary task, because according to the World Economic Forum, the percentage of central banks that are actually studying the advantages and disadvantages of virtual money is already up to 86% of the total. China is leading the way, but those in other countries, such as Japan and Switzerland, have already begun their experiments with digital currencies. The UK is also likely to closely follow preparations for the European Union’s future digital currency, the digital euro.

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Despite the assertion that the digital currency That would complement the criticism Rather than replacing deposits, this mega project has major implications for the entire financial system. On the one hand, experts believe that virtual money can speed up local and cross-border transactions, reduce costs and even help connect more people to the economy. But it could also undermine the status of traditional banks, including central banks, whose job it is to help maintain financial stability.

Sacha Woodward

"Wannabe writer. Lifelong problem solver. Gamer. Incurable web guru. Professional music lover."

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