UK Explores CBDC Options

CBDCs Are Not Going Away

I, for one, am glad to see that the development of CBDCs has continued, parallel with all the other crypto developments. Even though CBDCs are not considered to be “real” cryptocurrencies, I still believe that they will do the job of informing people of digital money. From that point, learning about Bitcoin, Ethereum, and other leading “real” cryptos is only a small step away.

Speaking of new CBDC developments, it was recently reported that the UK Treasury and the Bank of England have also joined the race. They launched a CBDC task force in late April, which was tasked with looking into CBDCs, their potential benefits, risks, and how well they would actually work in practice.

Given that we have seen many similar groups be formed all over the world for the purpose of exploring crypto, we can likely expect the same results. In other words, the UK Treasury and Bank of England will likely be notified that yes, there are benefits, and yes, there are risks, but with proper regulations, risks could be reduced, and the benefits will be worth it.

Digital Pound Sterling

So, if things go down this way, we may be seeing the decision to start developing the digital pound at some point in the next several months. Of course, this is all mere speculation. The UK might decide that benefits are not worth the risk, in which case they would be one of the rare few who gave up on CBDC development after looking into it.

However, I don’t think this will happen. The UK is still one of the biggest economies in the world, and with most of its peers working on their own CBDCs, the UK would be at a loss if it failed to create a digital asset of its own.

Do you think that the UK will decide to create a digital pound?

  • Yes, CBDCs are the next step in the evolution of money.
  • No, I think the UK financial authorities should adopt a decentralized cryptocurrency.
  • Yes, because choosing not to would allow its competitors to gain the advantage.
  • No, I think the UK will decide to stick with fiat money.
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