What is ‘Britcoin’?
As a part of ‘Fintech Week’ the Chancellor of the Excheqeur Rishi Sunak has announced a raft of plans to scale-up the tech space in the UK.
Sunak set out new initiatives to ensure the UK remains at the cutting edge of digitalising financial services.
And as a part of this – the government will look into the possibility of introducing a national digital currency – ‘Britcoin’.
— Rishi Sunak (@RishiSunak) April 19, 2021
A new Taskforce, bringing together the Treasury and the Bank of England, will be established to explore a possible UK central bank digital currency (CBDC). Two new forums will also be established to engage technical experts, and key stakeholders (including financial institutions, merchants, business users, civil society groups, and consumers) through the process.
To support private sector innovation, firms exploring how to use technologies like distributed ledger (DLT) to improve financial market infrastructure will have access to a new sandbox. This new regime will be inspired by the FCA’s sandbox and HM Treasury will work together with the Bank of England and the FCA to deliver this. In addition, the Bank of England has launched a new ‘omnibus’ account to allow access to innovative financial market infrastructure providers that can support delivery of faster, cheaper, 24-hour wholesale payment and settlement using central bank money.