Put Your Wallet Away, UK Government is Going Digital with British Pound
In news that is sure to surprise only generations of people who used to put pebble in their piggy banks, the UK government is continuing its ongoing journey into the digital age by creating a digital version of the British pound.
The digital pound is just one of the numerous technology-driven initiatives by the UK government that are designed to modernise the country’s economy. Bank CEOs, on the other hand, are taking a much more traditional stance on cryptocurrencies.
What is the Digital Pound?
The digital pound is essentially a type of digital currency, backed by the government, that will allow payments to be made digitally — a.k.a. on your phone or your laptop. It will be based on the existing British pound, but will be available in a digital form, and users will be able to store the money on their phones or within existing banking apps.
What’s great about this is that it spares us all from having to carry around a stack of coins and notes when all we need is to pay for a small expense. It’ll also be much faster, efficient and secure. Plus, you’ll have access to the pound wherever you are, be it at home or on holiday.
Bank CEOs Cracking down on Cryptocurrency
While the future of payments may be digital, the movement towards cryptocurrency is being met with resistance from a variety of sources, particularly from bank CEOs. In fact, some financial institutions are actively blocking access to cryptocurrency accounts and even threatening to close them down.
The reasoning behind this is mainly attributed to the fact that cryptocurrency is significantly more unpredictable than the British pound, given its volatility. Bank CEOs worry that customers could suffer significant losses if they invest in the wrong crypto asset.
As such, they’re restricting access to cryptocurrency accounts in order to protect their customers and are actively discouraging customers from investing in cryptocurrencies.
A Digital Future and Beyond
It’s clear that the UK government and bank CEOs have two very different approaches when it comes to digital payments. On one hand, the UK government is embracing digital technologies and is pioneering a digital version of the pound. This is great news for those of us who want to make digital payments without having to worry about carrying around physical money.
At the same time, bank CEOs are taking a more conservative stance on cryptocurrencies and are actively restricting access to them. This may be understandable considering the volatility of the crypto space, but it’s a bit of a buzzkill for those of us who were looking forward to a digital future.
Conclusion
It’s clear that the UK government is taking the lead when it comes to adopting digital technologies and is paving the way for a digital future. Bank CEOs, on the other hand, are taking a much more conservative approach to ensure customer safety.
We might not be able to pay for our morning coffee with some wild crypto, but at least we can rest assured knowing that the British pound will always be there to help out!
