According to a story published by the Daily Telegraph on February 4, the Bank of England (BoE) and Her Majesty’s Treasury consider that the UK may need to develop a central bank digital currency (CBDC) within the year. 2030.

According to a source within the administration who spoke to the publication, the “digital pound” plan will be unveiled next week. On February 7, Lieutenant Governor Jon Cunliffe will provide an update on the work the BoE has been doing on the CBDC.

Bank of England Governor Andrew Bailey and Chancellor of the Exchequer Jeremy Hunt were quoted in the Telegraph as saying they believe a digital version of the pound is likely to be required in future. This conclusion was reached on the basis of the work carried out to date.

The Bank of England did not comment on the report, but said a joint consultation on the digital pound would be available in the near future.

Cash and coin payments in the UK were reported to have fallen by 35% in the year 2020. About one payment in six is ​​made in cash, while the other five are made using debit and credit cards. A central bank-produced digital currency is a digital representation of government-issued money that is tied to fiat reserves on a one-to-one basis.

The announcement came just days after HM Treasury posted a job listing on LinkedIn announcing a vacancy for a central bank digital currency head. The role was described as “important, complicated and cross-cutting” in the job description, saying it required “substantial involvement within and beyond HM Treasury”.

The digital pound is just one of the many CBDCs that are planned to be rolled out in different parts of the world in the coming years. The European Central Bank has been discussing the possibility of a digital version of the euro, and other nations, notably Sweden and Denmark, are also looking into adopting digital currencies.