Sir Jon Cunliffe, Deputy Governor for Financial Stability, has confirmed that the Bank of England plans to launch the U.K. central bank digital currency (CBDC), called “Britcoin”. He expressed concern that various stablecoins could be more attractive to the public than fiat currencies themselves, and said it is likely that the state will have to issue some form of digital cash in order to maintain citizens’ trust in the sector as well. Cunliffe believes that such a digital currency will have better functionality and lower transaction fees than the commercial bank’s current digital money offer, which could attract a relatively large number of users, adding:
“The knowledge that under stress depositors have the option to switch into state money may be important in preventing a more general loss of confidence in money.”
However, Andrew Bailey, the governor of the Bank of England, warned again against investing in cryptocurrencies, shortly after the price of Bitcoin fell very quickly and sharply below $50,000 due to Elon Musk’s statement.