Home Business NewsBusiness What will happen to the Britcoin? Here’s what you need to know

What will happen to the Britcoin? Here’s what you need to know

by LLB Editor
7th Jun 21 11:21 am

The Bank of England (BoE) has still not made a decision on the viability of a Britcoin, according to a discussion paper published by the bank on Monday.

“We live in an increasingly digitalised world where the way we make payments and use money is changing rapidly,” said Andrew Bailey, governor of the BoE.

“The prospect of stablecoins as a means of payment and the emerging propositions of CBDC have generated a host of issues that central banks, governments, and society as a whole, need to carefully consider and address.

“It is essential that we ask the difficult and pertinent questions when it comes to the future of these new forms of digital money.”

One of the biggest risks of a digital pound, the bank said, would be the potential for digital money to undermine confidence in money and payments and in the financial system as a whole.

“Ensuring confidence in sterling entails the provision of safe money as a ‘risk-free’ means of payment for households, businesses and the wider financial system. And it entails the security and reliability of those payments. If a stablecoin were to fail to honour its obligations, or suffer an operational failure such as a breach of privacy, this could undermine public confidence in money and payments, and in the financial system as a whole,” the paper said.

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