Say Hello to Britcoin — and Say Goodbye to Financial Privacy

Central bank digital currencies (CBDC) have emerged as the latest fascination among governments worldwide. Since gaining popularity in the mid-2010s, policymakers have embarked on a race to develop digital versions of their respective currencies. From the Rupee to the Peso and even the Pound, countries are eagerly exploring the possibilities. However, unlike traditional currency, a British CBDC would exist solely in digital form, with no physical notes or coins.

The Purpose of a Digital Pound

The purpose and necessity of a digital pound remain unclear. As technology continues to advance, our financial system naturally becomes more digitalized. With an array of options available for consumers to store their money, there is little public demand for the creation of a digital pound. Moreover, its role within the existing financial ecosystem remains uncertain, lacking clarity and consensus.

The Growing Digitalisation of the Financial System

The financial landscape has experienced a significant shift towards digital transactions. Online banking, digital wallets, and cryptocurrencies have already transformed the way we handle money. In this digital era, the need for a centralised digital pound is debatable. The existing…