A CBDC is a cryptocurrency issued by a central bank. It is a stablecoin pegged to a country’s national currency. In this case it would be a digital pound sterling. BoE announces the news on April 19 through a press release.
The task force will investigate the potential and risks of a CBDC. The development of a digital British pound has not yet been established, but this is the biggest step that Great Britain has taken in this direction so far.
BoE and HM Treasury will also set up a forum for feedback on the CBDC project. The task force will also look at other countries to see how they deal with CBDCs. Several countries have started investigations into CBDCs in recent years. Sweden started this with an e-krona at the end of last year, the Bahamas has already launched a CBDC with the Sand Dollar.
The European central bank (ECB) is also considering developing a digital euro, but recently ECB president Christine Lagarde said it might take a few more years. China, on the other hand, has been running trials for several months with digital yuan / renminbi, which it calls a Digital Currency, Electronic Payment (DCEP) system.