What Is Britcoin?

The digital pound is an initiative for a new type of money issued by the Bank of England used in-store or online to make purchases. Nicknamed "Britcoin" or "digital sterling," the digital pound would be issued by the Bank of England and backed by the government and would not be a privately issued cryptocurrency.

Britcoin and CBDC

澳洲幸运5开奖号码历史查询:Central banks have been researching 澳洲幸运5开奖号码历史查询:central bank digital currency (CBDC) as an alternative to cryptocurrencies. The Bank of England seeks to establish the digital pound to improve payment options. The digital pound would enable private companies to innovate, make payments more efficient, and provide consumers with more choices.

As consumers move away from cash and toward digital payments, new forms 🃏of money emerge, and some pose risks to financial stability. The digital pound would be an electronic version of the ba🔜nknotes issued by the Bank of England.

A CBDC would be sovereign money, without fees, in digital form. A 澳洲幸运5开奖号码历史查询:credit or debit card is ban⭕k money and is one step removed from the issuing authority. Bank money is often the place where fees are levied.

Cryptocurrency in the U.K.

The rise of cryptocurrencies grew following the 2008 financial crisis. Many investors sought alternatives to traditional fiat currency, money issued by a nation's government. Bitcoin was one of the first decentralized cryptocurrencies. Transactions are generally verified and recorded through a 澳洲幸运5开奖号码历史查询:blockchain, a publicly-accessible ledger that records cryptocurrency transactions.

The term "Britcoin" once referred to a cryptocurrency launched and based in the United Kingdom in 2011. Like other cryptocurrencies, Britcoins allowed traders to execute 澳洲幸运5开奖号码历史查询:transactions safely and privately without using a bank account. The cryptocurrency traded on the now-defunct Britcoin Exchange and provided individuals with an alternative to the 澳洲幸运5开奖号码历史查询:British pound (GBP). Britcoin was delisted from most exchanges in 2019.

The Bottom Line

A central bank digital currency (CBDC) is an alternative to cryptocurrencies. The digital pound, or "Britcoin," is an initiative for a new type of money issued and backed by the Bank of England. The digital pound would be denominated in sterling, and its value would be stable, just like banknotes. £10 in digital pounds would equal a £10 banknote.