MK Teach

The Digital Pound and Cryptocurrencies: Finding Common Ground for a More Robust Financial System

The UK, like other countries, is looking into creating a central bank digital currency (CBDC), which would function as a digital version of cash for everyday transactions. The Bank of England (BoE) has recently presented a plan for a digital pound and aims to implement it by 2025, but it is seeking public input until June 7, 2023. While there are benefits to CBDCs, including increased financial inclusion, the BoE is also considering how a digital pound could work alongside other digital currencies, such as cryptocurrencies, in order to reduce systemic risk and provide additional banking options for UK consumers.


Benefits of a Digital Pound

Coexistence of a Digital Pound and Stablecoins

Regulations of Stablecoins


A digital pound could provide increased access to financial services and reduce financial risk. By coexisting with stablecoins, it could offer additional banking options for UK consumers. Stablecoins backed by a digital pound in an account held with the central bank would be more transparent and trustworthy, and the central bank could impose regulations to reduce financial risk.


  1. What is a digital pound?
  1. What are the benefits of a digital pound?
  1. What are stablecoins?
  1. How could stablecoins complement a digital pound?
  1. How could stablecoins be regulated?
Exit mobile version