The Bank of England admitted that Britcoin can do without blockchain
Date: 2023-06-28 Author: Karina Ziganova Categories: BLOCKCHAIN
The UK's digital currency may eventually do without blockchain support, the Bank of England admitted
The UK's digital currency (also known as Britcoin) could end up working without a blockchain. Tom Matton, head of the digital state currency project at the Bank of England, spoke about this in an interview with Bloomberg.
He stressed that so far the Central Bank has not made a final decision on the architecture of the Britcoin. As Matton noted, experts interviewed by the regulator disagree on which system should be used for the digital state currency. The publication notes that the British Central Bank intends to test different versions of registries, including the traditional blockchain, in order to determine the best scenario for using Britcoin.
According to Matton, the Bank of England fears the excessive openness of the blockchain, which was the reason for the search for alternatives.
In any case, the imminent appearance of the British digital pound should not be expected. As Bloomberg notes, before making a final decision, the UK will spend at least another two to three years assessing the requirements for technology and policy on digital state currency.
It is noteworthy that the head of the Bank of England, Andrew Bailey, does not see the point in the digital pound. According to him, there is already an "updated wholesale system of cash settlements of the central bank." If a digital pound appears, then at the initial stage it can be stored only for a limited amount. As stated in a commentary to the media representative of the Bank
In England, citizens will only be allowed to store up to £20,000 (~$25,445) in Britcoin. Interest payments on digital currency will not be paid. Restrictions are conditioned by insurance against a sharp withdrawal of money from private banks in favor of CBDCs.
