According to a survey of 2,500 adults carried out by POLITICO, the Brits harbour is found to be more suspicious about central bank-backed digital currencies (CBDCs) than excitement. This gives the Bank of England a pain for winning public support for the so-called Britcoin. 

CBDCs are very different from cryptocurrencies such as Bitcoin and Ethereum. Their value is decided and driven by investors. Since a public authority does not back it, people can lose everything that they put into the digital asset. CBDCs are meant to complement people’s wallets and not replace their cash.

In June, a recent speech by the Bank fintech chief, Tom Mutton, has signaled interest in CBDCs “Access to central bank money in the form of CBDC could support wider public policy objectives. These range from the possible benefits for competition and diversity in payments through to opportunities to promote financial inclusion and safeguard privacy. Public trust is a particularly important consideration.” 

The survey had found only 24% of people believe that the digital pound would bring more benefits than harm; 30% claimed the opposite. The rest of the audience couldn’t come to a decision.

73% of poll participants are reluctant to hold Bitcoins due to the threat of cyberattacks and hackers. 70% worry about losing payment privacy, while 45% were mindful of Bitcoin's potential environmental impact.

Britcoin was a cryptocurrency that was launched and based in the UK. It was initially traded on Intersango and renamed the Britcoin Exchange Intersango. Eventually, it moved to other sites where traders were allowed to exchange British pounds for coins. U.K. has been experimenting and exploring the CBDC concept for the last few years now. 

Rushali Das

CBW - External Analyst

INDIA