Is a UK CBDC London’s answer to reclaim Europe’s post-Brexit Financial Hub?
By Max S. - Cryptocurrency Enthusiast
The question hangs in the air with whether or not a digital pound can boost Britain's economic growth after Brexit. With many people turning to trading cryptocurrency for profit, a new digital age is driving major banks to enter the blockchain technology space by implementing Central Bank Digital Currencies (CBDC).
A financial think tank has proposed that the UK should introduce their own CBDC in the form of a digital pound in order to boost London's position as a global trading hub in the aftermath of Brexit. The UK Finance Ministry is currently looking at various ways on how to make the City of London more appealing to worldwide traders, after Amsterdam claimed much of the trading global attention in the post-Brexit climate.
A CBDC for short, is similar to that of a stablecoin for those who are interested in investing in cryptocurrency. A stablecoin like Tether (USDT) or even TrueUSD (TUSD) are crypto to fiat coins that are pegged at the price equivalent of 1 USD. So, like a stablecoin, a CBDC would be the equivalent of the nation’s fiat currency and used as a cashless payment option.
China, who has already rolled their digital yuan (YUAN) CBDC, has seen the issuance of biometric passports linked to digital yuan wallets as the country moves closer to granting its CBDC.