UK Central Bank Mulls Cryptocurrency Linked To Pounds Sterling

A research unit at the Bank of England is reportedly investigating the introduction of a cryptocurrency linked to the British pound.

AccessTimeIconJan 2, 2018 at 10:00 a.m. UTC
Updated Sep 13, 2021 at 7:19 a.m. UTC

A research unit established by the Bank of England (BoE) is investigating the introduction of a cryptocurrency linked to pounds sterling.

The team involved expected to report back within the next 12 months, a Telegraph report says.

If approved, the central bank-issued cryptocurrency would allow British users to keep their digital money with the central bank itself, eliminating the need for retail banks. The system would also enable large transactions to be carried out almost instantaneously, the report says.

Talking to the Treasury Select Committee in England in December, BoE governor Dr Mark Carney said that he has participated in discussions with major central banks on launching digital currency, adding that BoE had carried out a successful test on blockchain technology last summer.

Carney said:

"The underlying technology [blockchain] is actually of a fair bit of interest. We are working with it at the Bank of England."

He further said that using blockchain technology for settlements between central banks would be the "most interesting application" that would benefit financial stability and efficiency.

As reported in September 2017, Simon Scorer, a researcher at BoE, has publicly discussed the design requirements for a central bank-issued digital currency, saying it would need "extraordinary levels of resilience" against a range of problems.

"Like current financial infrastructure, a widely used [central bank digital currency] would likely be considered critical national infrastructure. ... It would need to be operational across the country, 24 hours a day, 365 days a year," he said at the time.

Bank of England image via Shutterstock


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to to register and buy your pass now.