BritCoin, Digital Pound or Digital Sterling? Whatever you call it, are you prepared for it?

The UK is preparing the ground to enter the world of digital assets. The Bank of England (BoE) has recently published a digital pound consultation paper related to digital currencies and exchanges, in line with actions taken by other European Countries, and in particular, EU member states (MICA).

The digital pound is a new revolutionary form of central bank currency also referred to as Central Bank Digital Currency (CBDC). The creation of the digital pound is a response to the growing demand for a more accessible and efficient payment system, which will coexist seamlessly with traditional forms of cash and bank deposits.

This exciting development has been enthusiastically anticipated by those seeking innovation. Digital assets can potentially enable a faster, more secure, and convenient way to manage finances, and the introduction of the digital pound represents a critical shifting moment in the way we think about transactions and financial security.

As TORI have indicated in our Regulatory Radar for 2023, regulators are exploring and setting initial rules for the oversight of new financial instruments, but they are still cautious. Given the growing concerns around consumer protection and market integrity, regulators have been forced to develop an updated, comprehensive, end-to-end framework where market participants will transact and use these new services in a more secure and transparent way.

As the world becomes increasingly digital, the demand for fast, secure, and convenient payment methods is growing. Unlike cryptocurrencies, the digital pound is fully supported by the Bank of England, offering users the same level of security and stability they would experience with physical bank deposits. The digital pound represents a significant advancement in financial technology and is ready to transform the way we think about money.

Furthermore, the digital pound is thoughtfully constructed to provide an efficient, and accessible alternative to conventional bank deposits. It will have the capability to make instant payments at any time (24/7), making it a highly convenient payment method for UK and non-UK residents.

So, is your wallet ready to hold Digital Pounds / BritCoins / Digital Sterling?

Next steps?

The Bank of England stated that they will be accepting answers / comments on the BritCoin Consultation Paper until the 7th of June 2023. Industry input provided will shape the subsequent phases, and will highlight crucial views and perceptions pertaining to the establishment of the digital pound.

As announced, once the deadline is closed, BoE will commence the design phase in order to assess the technology and policy necessities around the creation of the digital pound.

Get ready to embrace the future of finance with the revolutionary digital pound!