While digital currency continues to progress into mainstream banking, the British government has pushed off the decision to go forward with a digital pound until at least 2025.
The United Kingdom’s finance ministry will continue with preparations despite the decision and stated that it has “progressed to the design phase of work on a digital pound”.
The present prime minister has been in favor of the drive towards a digital pound, but most experts think even with approval it will be three to five years away from launch. Central banks throughout Europe are in a similar place regarding digital currency, with one of the concerns coming from banks that it could lead to potential outflows.
One of the issues that have come up is whether digital currency would be private like traditional cash. Most plans including the UK plan would limit each individual to a certain amount of digital cash holdings.
The use of cash continues to decline in the United Kingdom.