The British government has ordered the creation of a cryptocurrency task force. The UK CBDC will be created after Her Majesty’s Treasury and the Bank of England conduct research into cryptocurrencies.
The departments will investigate if the UK needs its own stablecoin, on what basis it can be used, what risks come with its growth, and how to prevent fraud involving a possible British central bank token as part of the project.
In addition to the working group, the government announced the establishment of a forum to solicit input on all aspects of the CBDC integration that are non-technical. They’ll also set up a separate “technical forum” to deal with the technical issues surrounding the launch of a national cryptocurrency. Furthermore, the Bank of England has established a CBDC division, which will collaborate with other government agencies as well as foreign representatives.
Following Brexit, the establishment of a CBDC task force indicated that local governments were concentrating on cryptocurrency and blockchain technology. The British Treasury’s Chancellor, Rishi Sunak, said in the autumn that leaving the EU would enable the country to “refresh” its financial sector. He saw a major positive change in the national token’s trajectory, as well as other financial developments.
Rishi Sunak also stated that the United Kingdom is very interested in blockchain, and that the government will establish a fintech sandbox to attract existing and new startups to the country.