In a press release on April 19th, 2021, the Bank of England and UK Treasury stated that it has created a digital currency task force. The team has been given the responsibility of making diligent research towards the possible invention of a digital currency.
At the moment, there is no solid affirmation that the proposed invention of the CBDC will be a success. The task force has the role of exploring possible use cases for CBDC as well as determining its framework and design.
It was mentioned that the CBDC will not totally replace conventional payment systems should it be launched. In the meantime, the goal is to utilize the new currency as an alternative for current payment methods.
More Countries to Explore the Concept of Digital Currencies
England is not the First Nation to explore the possibilities of inventing a digital currency in the future. Earlier this year, China announced that they are working towards the launching of their own digital currency. More Nations have also been exploring the possibilities ever since.
The digital Yuan is not going to be an exact replica of cryptocurrencies. Li Bo stated that the digital Yuan will be regulated, unlike most cryptocurrencies that cannot be regulated. Also, the digital Yuan will serve as a valuable digital currency that is free from volatility and instability.