Britcoin not expected until at least 2025, says BoE

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In a new report issued by the Treasury Select Committee, MPs warned that Britcoin's introduction could increase the chance of bank runs and put up the cost of borrowing.

A digital currency backed by the UK’s central bank (CBDC) will not be rolled out until 2025 at the earliest, a Bank of England grandee has revealed.

The UK’s central bank has committed to a joint Treasury consultation on the development of a UK CBDC, dubbed Britcoin. However, even if lawmakers decide to push ahead with the development of a digital version of the pound it will not be ready until the second half of the decade according to Shiv Chowla, the Senior Manager for CBDC at the UK’s central bank. 

“We have publicly committed to alongside agency to launch a consultation sometime in 2022 on our assessment of the case for a CBDC in the UK and the merits of further work to develop an operational technology,” said Chowla, speaking at a London crypto conference.

“Any such phase will take several years and of course, evolve more in depth work and testing about the technical technical feasibility… The earliest stage for a CBDC will be in the second half of this decade,” he confirmed.

Chowla said that a CBDC could transform the relationship between the British public and the central bank.

“The really big thing is and this would be an innovation a form of money that is actually used by the general public,” Chowla said.

“It’s about a different relationship and connection to be central bank and funding that could in principle, be both innovative and potentially transformative. That’s why we have to take this so seriously,” he continued.