The Bank of England and the United Kingdom's Treasury are working on a digital asset

blockchain.news:

The Bank of England (BoE) and the Treasury of the United Kingdom are moving on with plans to establish a digital currency that might «offer a new method to pay» without necessarily replacing cash. These ideas are in the early stages.

A joint consultation paper on central bank digital currencies (CBDCs) is scheduled to be released on February 7, with the Bank of England and the Treasury seeking views on how and if they should continue with establishing a CBDC. The topic of the document is central bank digital currencies (CBDCs).

Jeremy Hunt, the Minister of Finance, made an announcement to the public on February 6 indicating that the two organizations will collaborate in an effort to build a modernized digital payments system that does not necessarily exclude the usage of cash.

«While cash is here to stay, a digital pound issued and backed by the Bank of England could be a new way to pay that is trusted, accessible, and easy to use,» he said. He continued by saying that «we want to investigate what is possible first, while always making sure that we protect financial stability.»

Officials from the Bank of England and the Treasury Department anticipate that large technology firms will provide a government-backed alternative to privately produced stablecoins over the next few years. This will be another significant area of attention that will be addressed.

As part of the statement, Governor of the Bank of England Andrew Bailey highlighted the fact that a «digital pound would enable a new method to pay, benefit companies, retain faith in money, and better safeguard financial stability.»

«However, there are a number of ramifications that will need to be thoroughly considered by our technical work. This