However, a consultation and development phase must be completed first.

Key Takeaways

The Bank of England and HM Treasury have announced the next steps in exploring plans for a CBDC stablecoin.
This will involve a consultation in 2022, which will decide whether to begin a several-year-long development phase.
The development phase, if successful, could lead to the launch of a CBDC between 2025 and 2030.

Share this article

The Bank of England and HM Treasury (HMT) have announced that they will continue to explore a CBDC or national stablecoin.

Consultation Will Begin In 2022

HMT and the Bank of England will launch a consultation in 2022 to assess the case for a U.K. central bank digital currency (CBDC).

Though the two entities have not yet made a final decision, this consultation will decide on whether a development process can begin in the future. This development phase would involve the creation of a technical specification and design testing.

That phase would also last several years. If it were successful, it would lead to the launch of a CBDC between 2025 and 2030.

The Bank of England writes that a CBDC would serve as “a new form of digital money,” and that it would be used by individuals and businesses “for their everyday payments needs.” It would not replace cash and bank deposits but would work alongside them.

The CBDC would be issued by the Bank of England itself. Presumably, it would be tied to the value of the British pound sterling, though this is not explicitly stated in the announcement itself.

Earlier this year, the Bank and HMT created a joint task force to explore the possibility of a CBDC, which led to today’s news.

Other Countries Are Also Exploring CBDCs

England is one of several countries that are exploring the possibility of a CBDC. Most notably, China has made significant progress with its own CBDC, even adding support at many ATMs this year.

Other countries that are examining or launching CBDCs include the United States, Nigeria, Canada, Ghana, and others.

Approximately 89 countries are currently exploring the technology, according to the research center Atlantic Council.

Disclaimer: At the time of writing this author held less than $100 of Bitcoin, Ethereum, and altcoins.

Share this article

The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.

You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.

See full terms and conditions.

Recommended News

Read More