Britcoin: What is a CBDC? Bank of England proposes new Central Bank Digital Currency

In the case of Britcoin, the digital currency would be issued by the Bank of England and the Treasury, making it a digital equivalent of the Pound.

According to the Bank of England, Britcoin would not replace the cash you keep in your wallet or piggy bank, but rather, work alongside it for digital transactions.

The Bank of England said: "A CBDC would be a new form of digital money issued by the Bank of England and for use by households and businesses.

"It would exist alongside cash and bank deposits, rather than replacing them."

In essence, Britcoin would allow the UK Government to digitise banknotes and coins to facilitate more cashless payments.