Britain Moves Closer to Launching Official Digital Currency

Britain Moves Closer to Launching Official Digital Currency

The British government is taking another step toward launching an official digital currency.

British officials said this week they plan to gather public comments on whether the country should establish a digital version of the pound. The decision comes nearly two years after Britain's Treasury¹ and the central bank, the Bank of England, confirmed they were considering the launch of a digital currency.

If created, a digital pound would be issued by Britain's central bank, not by private companies. The Bank of England would set the digital currency's value. Digital currencies are also known as cryptocurrencies.

British proposals for an official digital currency suggest individuals would not hold accounts directly with the Bank of England. Instead, they would hold accounts with private digital wallet providers. Holders² of the currency would be able to use it to pay for goods and services electronically.

Britain's Finance Minister Jeremy Hunt said in a statement, "While cash is here to stay, a digital pound issued and backed by the Bank of England could be a new way to pay that's trusted, accessible and easy to use."

Hunt added that the government is interested in investigating different possibilities for an official digital currency, while also taking steps to protect the finances of users.

Bank of England Governor Andrew Bailey said all elements of a digital currency system – including privacy issues – need to be considered. Gathering³ public opinions on creating a digital pound marks the beginning of "what would be a profound decision for the country on the way we use money," Bailey said.

British Prime Minister Rishi Sunak had asked Britain's central bank to examine the possibilities of a national digital currency while he was serving as finance minister in 2021.

So far, 11 countries have launched digital currencies. The U.S. Federal Reserve and the European Central Bank have both considered launching official digital currencies.

Supporters of such currencies say they make digital business easier and less costly⁴. Such currencies can also make the financial system available to people who do not hold bank accounts.

But digital forms of currency also present risks, including internet attacks, privacy concerns and the danger that they can be misused⁵ by criminals.

The cryptocurrency industry has been hit with a series of problems in recent months. Crypto crashes led to large losses last year. And the collapse⁶ of crypto company FTX in November led to fraud charges against FTX founder⁷ Sam Bankman-Fried.

Former Bank of England Governor Mervyn King recently said he thinks a digital pound would have risks but "no obvious benefits."

King, who is currently a member of Britain's House of Lords, added that state-backed digital currencies may be useful in countries that do not have effective banking⁸ systems. But he said he does not believe this is the case in Britain.

"We need to be selective and not driven by a misplaced enthusiasm for all things crypto," King said.

Words in This Story

digital wallet – n. a way of storing a user's digital cash and online shipping⁹ information

cash – n. money in the form of bills and coins, rather than checks and credit cards

accessible – adj. able to be reached or easily gotten

profound – adj. felt or experienced very strongly or in an extreme way

fraud – n. the crime of using dishonest methods to take something valuable from another person

obvious – adj. easy to see, recognize or understand

benefit – n. a good result or effect

enthusiasm – n. a feeling of energetic interest in a particular subject or activity

1 treasury   

n.宝库；国库，金库；文库

参考例句：

• The Treasury was opposed in principle to the proposals.财政部原则上反对这些提案。
• This book is a treasury of useful information.这本书是有价值的信息宝库。

2 holders   

支持物( holder的名词复数 )； 持有者； （支票等）持有人； 支托（或握持）…之物

参考例句：

• Slaves were mercilessly ground down by slave holders. 奴隶受奴隶主的残酷压迫。
• It is recognition of compassion's part that leads the up-holders of capital punishment to accuse the abolitionists of sentimentality in being more sorry for the murderer than for his victim. 正是对怜悯的作用有了认识，才使得死刑的提倡者指控主张废除死刑的人感情用事，同情谋杀犯胜过同情受害者。

3 gathering   

n.集会，聚会，聚集

参考例句：

• He called on Mr. White to speak at the gathering.他请怀特先生在集会上讲话。
• He is on the wing gathering material for his novels.他正忙于为他的小说收集资料。

4 costly   

adj.昂贵的，价值高的，豪华的

参考例句：

• It must be very costly to keep up a house like this.维修这么一幢房子一定很昂贵。
• This dictionary is very useful,only it is a bit costly.这本词典很有用，左不过贵了些。

5 misused   

v.使用…不当( misuse的过去式和过去分词 )；把…派作不正当的用途；虐待；滥用

参考例句：

• He misused his dog shamefully. 他可耻地虐待自己的狗。 来自《简明英汉词典》
• He had grossly misused his power. 他严重滥用职权。 来自《简明英汉词典》

6 collapse   

vi.累倒；昏倒；倒塌；塌陷

参考例句：

• The country's economy is on the verge of collapse.国家的经济已到了崩溃的边缘。
• The engineer made a complete diagnosis of the bridge's collapse.工程师对桥的倒塌做了一次彻底的调查分析。

7 Founder   

n.创始者，缔造者

参考例句：

• He was extolled as the founder of their Florentine school.他被称颂为佛罗伦萨画派的鼻祖。
• According to the old tradition,Romulus was the founder of Rome.按照古老的传说，罗穆卢斯是古罗马的建国者。

8 banking   

n.银行业，银行学，金融业

参考例句：

• John is launching his son on a career in banking.约翰打算让儿子在银行界谋一个新职位。
• He possesses an extensive knowledge of banking.他具有广博的银行业务知识。

9 shipping   

n.船运（发货，运输，乘船）

参考例句：

• We struck a bargain with an American shipping firm.我们和一家美国船运公司谈成了一笔生意。
• There's a shipping charge of ￡5 added to the price.价格之外另加五英镑运输费。