What is the digital pound? The Bank of England's possible digital currency
By SendPay Business · · 2 min read
The digital pound is a possible new form of money that the Bank of England and HM Treasury have been exploring. It would be a digital version of cash issued by the Bank of England itself, sometimes nicknamed "Britcoin". No decision has been made to launch it.
How it would differ from what you have now
- Money in a bank account is a promise from that bank. A digital pound would be a claim on the Bank of England, like a banknote.
- It would always be worth exactly one pound, unlike crypto such as Bitcoin, whose price moves.
- People would hold it in digital wallets run by private firms, not directly with the Bank of England.
What has been proposed
In their public consultation, the Bank of England and the Treasury proposed a holding limit per person, suggested at between £10,000 and £20,000, so that people don't move all their savings out of banks. They also said the digital pound would pay no interest and that the government and the Bank would not see personal data.
What hasn't been decided
The project has been in a design phase. The government has said it would only go ahead after further consultation and new laws passed by Parliament.
Where SendPay fits
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This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.