Britcoin London studies launching its cryptocurrency(British Bitcoin Profit)

British Chancellor of the Exchequer Rishi Sunak told the Bank of England on Monday to analyze the arguments in favor of a new Britcoin , or a central bank-supported digital currency, with the aim of addressing some of the challenges that cryptocurrencies pose. like bitcoin.

A digital version of the British pound supported by the Bank of England (BoE) would potentially allow businesses and consumers to have accounts directly with the bank and avoid third parties when making payments, which would change the role of banks. lenders in the financial system.

"We are launching a new working group between the Treasury and the Bank of England to coordinate exploratory work on a possible central bank digital currency," Sunak told a financial industry conference.

Shortly thereafter, Sunak tweeted the word "Britcoin" in response to the announcement by the

Ministry of Finance task force.

Other central banks are also considering setting up digital versions of their own currencies, essentially expanding access to central bank funds that only commercial banks can currently use.

This could speed up internal and external payments and reduce risks to financial stability.

China is pioneering the launch of a central bank digital currency (CBDC). Last week, the European Central Bank said it was studying an electronic form of cash to supplement banknotes and coins, but its launch is still several years away.

The BoE said that a digital version of the British pound would not replace either physical cash or existing bank accounts.

"The Government and the Bank of England have yet to make a decision on introducing a CBDC in the

UK and will engage extensively with stakeholders on the benefits, risks and practicalities of doing so," the BoE said.

Bank of England Governor Andrew Bailey has previously said that bitcoin, the best known cryptocurrency, does not act as a stable store of value or an efficient way to transact, so it is not suitable to serve as a currency and is a risky bet for investors.

Central banks also frowned on Facebook's efforts to establish its own digital currency.

Still, cryptocurrencies have received growing interest from major financial institutions, with bitcoin hitting a record high of nearly $ 65,000 on April 14, a ten-fold increase in value in the space of a year. https://britishbitcoinprofit.info/