UK's Britcoin Might Not Run on The Blockchain Technology

In Brief

• UK's Britcoin may not use blockchain technology, as Bank of England remains unconvinced of its efficiency
• Over 100 central banks are exploring CBDCs; theUK launched a special task force for digital currency in April 2021
• The bank's consultation on Britcoin will conclude on June 30, with a 70% chance of the project proceeding

The UK’s plans for its central bank digital currency, dubbed Britcoin, may go ahead without the use of blockchain technology, according to the Bank of England.

As countries realize blockchain technology’s power, they plan to launch their CBDC on the blockchain. In fact, more than 100 central banks worldwide are exploring the idea of CBDC.

UK Not Convinced About Blockchain Efficiency
Tom Mutton, the head of the Bank of England’s CBDC project, told Bloomberg:

“We definitely want to be compatible with distributed-ledger business models in the private sector, but we were not convinced that distributed ledgers offered more efficiency over conventional ledgers. It’s very much open.”

Mutton further informed that no decisive conclusions were made among executives at a recent meeting on the digital pound.

While all options are on the table for the UK Britcoin, there is a high likelihood that it might not run on blockchain technology. The UK has been exploring a CBDC for over two years and launched a special task force for CBDC in April 2021.

In contrast to Mutton, some Bank of England officials have been pushing for the digital pound. This month, the central bank completed a key retail CBDC study, wherein the Deputy Governor of the Bank of England announced that there is a 70% chance of moving ahead with the Britcoin project.