Sunak mulls new Britcoin digital pound

A DIGITAL currency dubbed ‘Britcoin’ by Rishi Sunak could be launched by the Bank of England and the Treasury.

The electronic version of the pound would be put into circulation alongside cash and bank deposits, rather than replacing them.

Chancellor Mr Sunak (pictured) said a new taskforce will investigate the idea as part of a bid to boost the UK’s financial technology sector.

‘Our vision is for more open, greener, and more technologically advanced financial services,’ he told a fintech conference. ‘ And if we can capture the extraordinary potential of technology, we’ll cement the

UK’s position as the world’s pre-eminent financial centre.’

Promoting the news on Twitter, he added: ‘Britcoin?’

Although the chancellor may aim to replicate the success of cryptocurrencies such as Bitcoin, the key difference would be that the e-pounds were issued by the state. It could pave the way for ‘programmable money’ – allowing payments to be integrated with electric appliances at home or with tills in the shops.

Tax payments could be routed to HM Revenue and Customs at the point of sale, the Bank said.

Only the Bahamas has an e-currency at present but China is trialling one in several cities. The European Central Bank has said an electronic euro might be created within four years. It comes amid a decline in cash payments – a trend amplified by the Covid crisis. Mr Sunak said other ideas included a ‘scale box’, operated by the Financial Conduct Authority, to support firms trying to scale up innovative technology.