Do you agree with Sunak’s proposal to replace cash with official digital currency? Britcoin POLL: Do you agree with Sunak’s plan to replace cash with official digital currency?
RISHI SUNAK is looking into the prospect of a digital currency that may compete with cash, but do you think this is a good idea? Take part in today’s poll by voting in the box below.
The Chancellor is said to be pushing for a fundamental overhaul of the UK’s monetary system, including the introduction of a digital version of the pound, or “Britcoin.”
Mr Sunak formed a task committee in April to look into methods to strengthen the city’s economy by putting innovation and technology at the forefront.
In recent years, the hazy world of cryptocurrencies, particularly Bitcoin, has exploded in popularity.
Countries all around the world, including China, have started experimenting with state-backed electronic legal money.
However, unlike the unpredictable cryptocurrency markets, there would be more regulation and central bank involvement.
Insiders at the Treasury believe that a digital currency could help the UK economy recover from the global financial crisis.
Cash usage has plummeted in recent years, and it has accelerated during the pandemic as individuals were encouraged to use their credit cards to make purchases.
A digital currency might also give an alternative to traditional methods of stimulating the economy, such as quantitative easing.
The practice of injecting enormous sums of money into the economy frequently raises inflation and living costs.
“Bitcoins” are anticipated to be able to be paid straight into people’s bank accounts, speeding up transactions across the board.
Some say that it might help UK businesses save money on banking fees.
Others, on the other hand, are concerned that an ever-expanding digital economy would cause financial markets to become unstable, causing interest rates on loans and mortgages to rise.
Each digital coin would be one-of-a-kind, raising concerns about privacy and government control.
The current adoption of cryptocurrencies by traders has also raised environmental concerns, as electronic coin mining consumes a significant amount of electricity.
According to the Bank for International Settlements, about 90% of the world’s central banks have begun experimental studies into e-currencies.
China is experimenting with a digital yuan, while Sweden has the “e-krona” and the Bahamas has the “Sand Dollar.”
The Treasury and the Bank of England are presently collaborating to investigate the benefits of Fintech, including “Bitcoin.”
Jon Cunliffe, the bank’s deputy governor for financial stability, and Katharine Braddick, the Treasury’s director general of financial services, are leading the charge.
“Brinkwire Summary News,” for example.