How a digital pound could work alongside cryptocurrencies
The UK, like many other countries has developed a plan to create a central-bank digital currency (CBDC). A digital pound is a form of online cash that can be used for daily payments. The digital pound would not pay interest, like some standard savings accounts (or current accounts), but could improve access to financial services. Recently, the Bank of England proposed a framework that would govern how a digital currency would function. The Bank of England has proposed a timeline to introduce a digital pound by 2025. You have until the 7th of June 2023 to let the bank know what you think about its plan. The success of the UK CBDC depends largely on whether or not the benefits of having a digital currency are greater than the costs associated with creating and deploying the infrastructure required to support the new system of payment. CBDCs have many benefits, including increasing financial inclusion and making it easier for UK's unbanked 1.2 million residents ...