Why is the Bank of England looking into the digital pound?
The world we live in is becoming more and more digital. As a result, we aren’t using cash as much as we used to.
To keep up with changing times, the Bank of England and HM Treasury are looking at the idea of a digital pound. This would be an electronic version of cash issued by the Bank of England and accessed by digital wallets provided by companies.
You’d be able to spend your digital pounds in the shops and online, using your phone, as well as sending them to friends and family. And you would also still be able to pay with cash or money in your bank, even if we go ahead with the digital pound.
We know people think this could be useful, but we haven’t made a final decision whether to launch one. A few countries already have their own version of a digital currency and over 100 others are thinking about it.
We think a digital pound might offer a new way to pay, help businesses, build trust in money, and better protect our financial system.
Your questions answered
Will the Bank of England introduce the digital pound?
Would the digital pound replace physical money?
Would I have an account at the Bank of England?
What would I be able to use my digital pounds for?
Would it be used to monitor what I do with my money?
Would the Bank of England restrict what I use it for?
Would the digital pound be safe and secure?
Would I earn interest on my digital pounds?
Would the digital pound be just another cryptocurrency?
Would it be bad for the environment?
Would it only be for people who're comfortable with technology?
Why do we need a limit for how many digital pounds I can hold?
Would the Government or the Bank of England be able to control or monitor my digital pounds?
Would there be a vote on a digital pound and would I get a say?
