(ThePatriotWire)- The Bank of England announced that it will look into the possibility of issuing digital currency, suggesting that the digital pound will be necessary for the future, according to National File. A joint report was filed by the bank’s governor, Andrew Bailey, and finance minister Jeremy Hunt, which stated that while it is still too early to implement it, their research has justified making preparations.
The bank did not respond to the report but mentioned that a review between the bank and United Kingdom Treasury will be released soon.
The possibility of a digital pound was asked to be explored by former Finance Minister and current Prime Minister Rishi Sunak in 2021. City minister Andrew Griffith said that the U.K. cannot afford to “indefinitely” sit out issuing its own digital currency, citing “broad geopolitical concerns,” according to Reuters.
Concerns brought up by the Bank of International Settlements in June 2022 were that central banks must be modernized, and Big Tech companies should be prevented from controlling the flow of money.
As the U.K. deliberates a plan for the future of the digital pound, the European Central Bank has already begun sketching an outline. In January, the bank said that personal bank accounts will not be offered to people, but personal transactions will be allowed.
The news comes as the majority of the world’s banks are looking into the digital option for currency as decentralized exchanges and currencies look to make physical cash obsolete.
The need for regulation of the crypto space has also presented a problem to governments around the world amid the crash of the FTX exchange when its founder moved $10 billion of his clients’ money to his trading firm, according to American Pigeon.
“It shows the weaknesses of this entire sector,” Treasury Secretary Janet Yellen told Bloomberg News.