The digital pound (if created) is planned to work alongside cash and bank deposits rather than replacing them
The Economic Secretary to the Treasury of the United Kingdom ‘Andrew Griffith’ revealed that the government is considering introducing a ‘digital pound’. “The UK was committed to becoming a world crypto hub” he added.
However Griffith also added that the UK government was a long way from introducing stable coins for payment purposes.
But if the UK government chooses to step into the crypto world, why do it with a stable coin? Well, as the name suggests, stable coins are quite different from normal cryptocurrencies that tend to fluctuate almost daily and may shift market values by large percentages. Stable coins on the other hand are linked to gold or traditional currencies, making them a lot more stable.
Unlike the common perception, this digital pound is not created to replace the common currency, Instead Griffith suggests that the currency will go on to work alongside cash and bank deposits instead of replacing them.
According to details, the government will soon launch a public consultation on the attributes and working of the digital pound.
Apart from the UK, other countries such as China are also taking their first steps into the world of crypto technologies. Just a while ago, China launched its very own NFT trading platform where users from all over the world can come in to buy and sell NFTs.
A digital Yuan is also being tested in major Chinese cities such as Beijing, Shanghai and Shenzhen.
“I want to see us establish a regime, and this is within the FSMB [Financial Services and Markets Bill, currently being debated in Parliament], for the wholesale use for payment purposes of stable coins,” said Mr. Griffith while talking to the Treasury Select Committee.
“It is right to seek to embrace potentially disruptive technologies, particularly when we have such a strong fintech and financial sector” he added.