Minister claims government wants UK financial institutions to lead on the use of digital currencies
HM Treasury and the Bank of England are mulling the possibility of establishing a national central reserve of cryptocurrencies.
According to John Glen, the economic secretary to the Treasury, the government is determined “that the UK will continue to take a leading role in exploring central bank digital currencies, and the wide-ranging opportunities and challenges they could bring”.
Concurrent with the budget earlier this year, the Bank of England published a discussion paper on the issues and invited public responses.
The consultation has now closed and the central financial institution will now begin engaging with government to assess whether and how to press ahead with plans for a cryptocurrency reserve.
“HM Treasury and the Bank of England are now working together to consider next steps,” Glen said, in answer to a written parliamentary question from fellow Conservative MP Mark Pritchard.
Bitcoin is the best known and most popular cryptocurrency and one bitcoin is currently trading at about £7,350. Other prominent digital currencies include Ethereum, Litecoin, Ripple, and ADA.