On Monday, the central bank and the government revealed to the public the creation of a task force that will coordinate efforts on the possible creation of a Bank of England-issued digital currency that can be used by households and businesses.
The task force will engage in a series of discussions together with stakeholders to tackle the risks and benefits before making their decision.
Co-existence is the end goal
Before any more speculations are made, the government and the Bank of England were quick to offer clarifications.
In a statement, they said that if approved, the digital currency will exist alongside cash and bank deposits, rather than replacing them. This means that even when there is already a BOE-issued cryptocurrency, cash and bank deposits and other transactions involving fiat currency will still continue.
The move only proves that central banks are taking actions to make sure that they won’t fall behind especially with modern technology and coronavirus accelerating the push towards cashless transactions and cryptocurrencies such as Bitcoin (BTC) gaining broader adoption.