Britcoin (Digital Pound)

The digital pound, nicknamed Britcoin, is the Bank of England's proposed Central Bank Digital Currency that would function as digital cash available to the public for everyday payments while maintaining parity with pound sterling, designed to complement rather than replace physical cash and commercial bank deposits.

A consultation by the UK Treasury and Bank of England conducted from 2023 through 2025 concluded that a digital pound is "likely to be needed in the future" to maintain monetary sovereignty as cash usage declines, ensure access to central bank money in digital economy, provide resilient payment infrastructure less dependent on private payment platforms, and enable innovation in programmable payments and smart contracts while maintaining financial stability.

Design priorities emphasize privacy protection through transaction limits preventing surveillance of everyday purchases while maintaining AML compliance for larger amounts, accessibility ensuring offline functionality for users without internet connectivity or smartphones, intermediation through commercial banks and payment service providers rather than direct Bank of England accounts, and holding limits preventing excessive deposits shifting from commercial banks to central bank destabilizing financial system. The digital pound would operate alongside private stablecoins regulated under UK frameworks similar to MiCA, providing state-backed option while preserving private sector payment innovation. Implementation timeline remains uncertain pending political decisions on privacy safeguards, commercial bank impact mitigation, and technical infrastructure development. Concerns include government surveillance capabilities, potential bank disintermediation during financial crises, cybersecurity risks from centralized attack surface, and costs of building and maintaining infrastructure for functionality already provided by existing payment systems.