The UK announced the establishment of a Central Bank Digital Currency (CBDC) working group to the exploration of potential UK CBDC. This was announced jointly by the Bank of England and the British Treasury. The new CBDC will be a new form of digital currency issued by the Bank of England for households and businesses. It will exist with cash and bank deposits and will not replace them. Prime Minister Rishi Sunak jokingly on Twitter that the new digital currency could be called “Britcoin.”

Of course, this is not the official name of the digital currency, and the current CBDC deployment is still in the exploratory stage. To this end, the British Ministry of Finance and the Bank of England established a special working group. The Bank of England said in an official statement: “The government and the Bank of England have not yet made a decision on whether to introduce CBDC in the UK and will extensively engage with stakeholders on the benefits, risks and practicality of this.”

Following this, interest in cryptocurrencies continued to peak, and Tesla purchased $1.5 billion (approximately Rs 10.92 billion) worth of Bitcoin in February. Other cryptocurrencies such as Dogecoin have also made huge leaps in a short period of time.Prime Minister Rishi Sunak is joking Tweet Whenever it is released, the British digital currency can be called “Britcoin”.

At present, the purpose of the task force is to ensure that the British authorities adopt a strategic approach in accordance with their statutory goals when exploring CBDC, and to promote close coordination between them. The team needs to explore the goals, use cases, opportunities and risks of potential UK CBDCs. It will design the functions that digital currencies must display and “monitor the development of international CBDC to ensure that the UK remains at the forefront of global innovation.”

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The new CBDC working group will be co-chaired by Jon Cunliffe, Deputy Governor of Financial Stability at the Bank of England, and Katharine Braddick, Director-General of Financial Services at the Department of the Treasury. In addition, a CBDC participation forum and CBDC technical forum will be created to allow stakeholders to participate and collect opinions on all technical aspects of CBDC from different professional knowledge and perspectives. These forums will play an important role in helping to understand the technical challenges of designing, implementing and operating CBDC.