On February 7, the Bank of England issued a report in which it clarified details about the Digital Pound project.
The Digital Pound would be known as CBDC (Central Bank Digital Currency). And it would function as a regent currency of the country, but oriented to blockchain technology.
In this way, it offers one more alternative for those users who wish to make purchases through digital media, as well as payment of services or transfer between friends and family.
In addition, the CBDC allows the participation of any citizen through the Central Bank.
“The digital pound would be a new form of sterling, similar to a digital banknote, issued by the Bank of England. It would be used by households and businesses for their daily payment needs. If introduced, it would exist alongside cash and bank deposits and would be easily interchangeable with them.”
What solutions would the Digital Pound provide?
Money is an asset that has transformed over time. In the case of the Digital Pound it means a new alternative for users, who resort to using digital assets on the blockchain, who need a regulated asset that offers them the backing of the state.
Under that feature, the digital pound appears as a bridge between blockchain technology and novice users, in the use of this technology, but interested in the benefits it provides.
