UK Exploring Digital Pound

Around 90% of the world's central banks are now using, trialling or exploring the possibilities of digital currencies, according to Reuters. During a discussion on whether the collapse of FTX would influence decisions for a government controlled digital currency to be issued in the United Kingdom, the deputy governor at the Bank of England, Jon Cunliffe, has said that the UK may need a digital British Pound.

In his speech, delivered at Warwick Business School in Coventry, England, Cunliffe reflected on the current market developments and the work that needs to be done by authorities to regulate crypto stablecoins and keep consumers and investors safe. Legislations are currently being considered in Parliament to give UK regulators, such as the Bank of England, more control over the sector. If this bill is passed, the Bank of England would regulate all firms that produce stablecoins in the UK.

As well as regulation of stablecoins, the Bank of England will explore the possibility of issuing its own "digitally native pound." Cunliffe has said that this consultation, which will begin next year, is driven by current trends in payments, including a reduction in the use of physical money and the more general increase of digitalization in every day life.