The Bank of England and the Treasury to launch a formal consultation on a UK central bank digital currency

What

Bank of England takes next steps in digital money plan

Why

This evaluation of the design and possible benefits of a new kind of digital money is a further step towards its possible creation.

What next?

But the consultation in 2022 will form part of a “research and exploration” phase and will help the Bank and government develop the plans over the following few years.

The Bank of England and the Treasury are to launch a formal consultation on a UK central bank digital currency. The currency, for use by households and businesses, would sit alongside cash and bank deposits, rather than replacing them. But the consultation in 2022 will form part of a “research and exploration” phase and will help the Bank and government develop the plans over the following few years.

Financial services minister John Glen said a retail central bank digital currency (CBDC) would be used by people and businesses for everyday payments needs and help Britain stay at the forefront of innovation and technology in the financial sector.

For a beginner’s guide to stablecoins including CBDCs, visit Luno’s learning resource here.