Why does the UK have multiple currencies

Cryptocurrency: Britain is considering "Britcoin"

The British government wants to explore the feasibility of a digital version of the national currency, the pound. Finance Minister Rishi Sunak announced on Monday that his ministry would set up a joint working group with the UK central bank. This is to sound out the possibility of a central bank-supported digital currency, a "Britcoin", as Sunak tweeted later, alluding to the well-known cyber currency Bitcoin.

"We are setting up a new working group from the Treasury and the Bank of England to coordinate the exploration of a possible central bank digital currency (CBDC)," the minister said at a finance conference. Such a currency could be used by households and companies and would complement but not replace cash, said the Bank of England. However, neither the government nor the central bank have yet made a decision as to whether there will be a digital version of the pound in the future. With such a central bank-supported currency, according to experts, consumers and companies would have an account directly with the central bank.

Britcoin? # UKFW21https: //t.co/Slk5lwUvrV

- Rishi Sunak (@RishiSunak) April 19, 2021

Around the world, more and more central banks are working on digital currencies. Behind this is the rampant digitization of almost all areas in payment transactions. The threat of competition from cryptocurrencies from large technology groups such as the planned Facebook currency Diem is also a driving factor. In 2020, the island state of Bahamas was the first country in the world to introduce a digital version of its local currency, the "Sand Dollar". Of the major countries, China is the most advanced in developing central bank digital currencies. The European Central Bank (ECB) wants to decide around the middle of the year whether to start a formal project for a digital euro. (apa, reuters)