Britain’s Treasury and the Bank of England are weighing the potential creation of a central bank digital currency, reports Bloomberg.
The government and central bank on Monday announced the creation of a task force to coordinate on the possibility of BOE-issued digital money for use by households and businesses.
If approved, the digital currency would “exist alongside cash and bank deposits, rather than replacing them,” according to the statement.
If a digital currency operates alongside cash and checking accounts, then it is not a threat to privacy that an entire digital-only currency would be. It would be more like a debit card with cash as an option but it would be a slippery slope.