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Bank of England takes circumspect approach to ‘Britcoin’

Blockchain entrepreneurs are looking to the potential benefits of digital cash, while longer established actors are more cautious
Bank of England takes circumspect approach to ‘Britcoin’

 

  • The BoE has released its digital money report
  • Paper considers the implications for legacy financial infrastructure if 'stablecoins' replace physical cash

On Monday the Bank of England published its discussion paper on digital money. Predictably, the document throws up more questions than answers about how the UK financial system would adapt to the introduction of a central bank digital currency (CBDC), a concept already nicknamed Britcoin.

One takeaway at least, is how the bank seems to view digital money. The focus of the letter is ostensibly on the effects on legacy financial infrastructure if stablecoins (crypto tokens pegged to a central bank currency) or CBDCs replace physical cash (the part of the money supply known as M1) in more real-world transactions.

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