Report Calls For Digital Pound In UK

The Bank of England and HM Treasury believe the UK will need to create its own CBDC by 2030.

The Bank of England (BoE) and HM Treasury believe the UK will likely need to create its own Central Bank Digital Currency (CBDC) by 2030. According to a Telegraph report, the roadmap for the ” digital pound” could be introduced as early as next week: Deputy Governor Jon Cunliffe will provide an update on the UK’s CBDC on 7 February.

“Based on their work to date, the Bank of England and HM Treasury believe it is likely that a digital pound will be needed in the future,” Governor Andrew Bailey and Finance Minister Jeremy Hunt noted.

The UK Saw a 35% Drop in Cash Payments

In 2020, the UK saw a 35% drop in cash payments: today cash accounts for just one in six payments, all other transactions are conducted via debit and credit cards.

The news comes just days after the UK’s Department of Economy and Finance posted an open position for a “Head of Central Bank Digital Currency” on LinkedIn. The description calls this work “important, complex and transversal.”

The digital pound is one of many CBDCs expected to be introduced around the world in the years to come. The European Central Bank (ECB) is also discussing the possibility of introducing a digital euro in the future.

Read also: EU finance ministers issue a statement on the political aspects of the digital euro

A CBDC pioneer, the Chinese digital yuan was launched in beta last year. The latest updates include improved smart contract functionality and increased use cases.

This article is originally published on it.cointelegraph.com