Why is the Bank of England looking into the digital pound?
The world we live in is becoming more and more digital. As a result, we aren’t using cash as much as we used to.
To keep up with changing times, the Bank of England and HM Treasury are looking at the idea of a digital pound. This would be an electronic version of cash issued by the Bank of England and accessed by digital wallets provided by companies.
You’d be able to spend your digital pounds in the shops and online, using your phone, as well as sending them to friends and family. And you would also still be able to pay with cash or money in your bank, even if we go ahead with the digital pound.
We know people think this could be useful, but we haven’t made a final decision whether to launch one. A few countries already have their own version of a digital currency and over 100 others are thinking about it.
We think a digital pound might offer a new way to pay, help businesses, build trust in money, and better protect our financial system.