British Finance Minister Rishi Sunak and the Bank of England are investigating the usefulness of a private crypto coin. Sunak announced this yesterday.
The minister had also considered a name for the digital currency: “britcoin”.
“A government cryptocurrency should help the Brexit-affected United Kingdom remain competitive,” said Sunak. On Twitter, he spoke about “the britcoin”. According to the minister, such a currency should make it possible for entrepreneurs and companies to hold an account directly with the central bank. That option is now only open to commercial banks.
The British central bank, the Bank of England, is currently investigating its own cryptocurrency risks and opportunities. The institute emphasizes that a cryptocurrency does not replace cash and will not take over the role of bank accounts.
The United Kingdom is not the first country to consider its own crypto coin. Last year, the Bahamas launched their own currency to make payments in the archipelago’s 700 islands more efficient. China is likely to be one of the next countries to follow suit after numerous consumer tests.
The European Central Bank (ECB) announced more than a year ago, together with several other central banks, to study the possibilities of setting up their own crypto coins. A unique research team wants to know, among other things, in what situations crypto coins offer an advantage.
It also looks at functional and technical design choices and how different digital currencies can work together. The banks involved also want to share knowledge about emerging technologies.