The United Kingdom is creating its own digital currency

While it was an idea Digital currencies It is that you have a way to do it Global transactions Without government or financial agency intervention, the fact that more and more people are adopting it leads some governments, such as a government China, And now United kingdom, To look into your own possession Digital currency Official.

UK Chancellor Rishi Sunak announced that a new task force has been formed that will explore the value of establishing Digital currency To the central bank (CBDC) to be issued by Bank of England It is used by families and companies to carry out various transactions.

If created, the cryptocurrency would exist alongside cash and bank deposits, that is, it does not aim to replace it, but rather will only revolve around providing a new, safe and formal option for the British.

Also read: The woman almost went bankrupt after participating in an online dating site

About its name, Senk joked that it could be called a digital currency. “Britcoin“Although there is no official data in this regard yet. The only thing that was announced through a statement is that Bank of England He will evaluate goals, use cases, opportunities, Risks And CBDC design features. They also said they would look at international developments “to ensure the UK remains at the forefront of global innovation.”

The reason for considering this option is that there is less and less use of cash while the use of cryptocurrencies increases, so an increasing number of countries have begun to investigate digital currencies. In fact, an estimated 86% of central banks are exploring the advantages and disadvantages of central bank digital currencies, according to the World Economic Forum.

See also  Bushfires 'could burn across UK' this bank weekend as temperatures rise

It should be noted that in addition to the popularity of cryptocurrencies, specialists consider that the United Kingdom has announced its plan due to growing concerns about the impact of the cryptocurrency. Brixi In its financial sector, as an example of the consequences, in February, Amsterdam It toppled London as the largest stock trading center in Europe.

While it is unlikely that the Bitcoin coin will halt the decline in its economic power, experts believe it will, at the very least, give the country a boost amid the troubles exacerbated by the pandemic. Covid-19.

What is worth clarifying is that, according to experts, this is Currency It cannot be considered a form of cryptocurrency because it will be issued and managed by the central bank, that is, in reality it will only be the digital version of the physical currency. United kingdom.

Also read: How to accept WhatsApp’s privacy policies so you don’t run out of service

An example of China

China is at the forefront in terms of Digital currencies this means. There, some Shenzhen citizens received the first The digital yuan Which were released by the government and delivered to 50,000 randomly selected residents who requested it.

In total, 10 million yuan was created in digital currency, and last October, authorities distributed the money through mobile phone “red envelopes”, a tool designed to mimic the habit of presenting money in red packages that was first circulated for the first time. WeChat e-wallet.

Those who agreed to this option were given 200 yuan, which they could spend at more than 3,000 points of sale in the city. To execute transactions, a Mobile application.

It must be said that digital currency aims to complement, not replace, third-party payment apps, such as WeChat Pay and Alipay in a country where the use of cash has become less common.

Authorities said the reason for its creation, in addition to being able to better monitor the circulation of funds, is that it will allow it to run tests to see if it is. Technique Potential corruption cases can be detected more easily. For example, in the future, the central government may grant subsidies to local offices by sending a digital yuan and avoiding the diversion of resources.

Leave a Reply

Your email address will not be published.