The Bank of England has revealed there will be no ‘Britcoin’ before 2025 as it begins the research and exploration phase of the UK CBDC consultancy.
In an unexpected statement on next steps for a British Central Bank Digital Currency, the Bank of England (BoE) clarified that it was taking a reserved and cautious approach to the creation of a CBDC that will be based on the learnings of a multi-year research and exploration consultancy.
The consultancy will be a joint effort between the BoE and the Treasury.
Eyes across Whitehall will be following the consultancy keenly, as the assessment has been tasked with making a compelling case for what has been dubbed the ‘Britcoin’.
Economic Secretary to the Treasury, John Glen, explained that the consultation was a serious opportunity for a genuine national discussion about a centralised digital currency for the United Kingdom.
“This consultation will begin an open discussion on the role a UK central bank digital currency might play in the UK,” he said.
“I’d encourage everyone to contribute to the discussion so we can explore the opportunities this could bring, as well as understanding any risks it may pose”.
Implications for businesses
The assessment will seek to identify a suitable operational and technology model – with special focus on high-level architecture design features that could be incorporated and an investigation into the benefits and implications for citizens and businesses.
“What it will do is provide a platform for interested parties and relevant groups to engage with the key questions on the merits of CBDC, and whether the public sector should advance to a development phase,” added Jon Cunliffe, the Bank’s Deputy Governor for Financial Stability.
The Bank of England consultancy will produce a proposed technical specification with a conceptual optimal UK CBDC architecture, which can then be tested.
Read more: Britcoin: Rishi Sunak reveals more details about UK CBDC
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