The Bank of England (BoE) will limit the amount of digital pounds (also known as britcoins) citizens could hold in their accounts as the country wants to prevent fast removal of money from traditional bank accounts, Bloomberg reports.
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At launch, citizens could only hold from £10,000 (~$12,000) up to £20,000 (~$24,000), a Bank of England official said. However, details are still subject to change until June, when the UK plans to decide how to adopt the central bank digital currency (CBDC).
"A limit of £10,000 would mean that three quarters of people could receive their pay in digital pounds, while a £20,000 limit would allow almost everyone to receive their pay in digital pounds," said BoE Deputy Governor, Jon Cunliffe.
The announcement comes as the country is readying for its own CBDC. As iHodl earlier reported, the UK aims to launch its own national digital currency after 2025. Currently, the authorities are studying the impact of this possible CBDC on financial stability, said Jeremy Hunt, the Head of the UK Treasury.
The main purpose of the britcoin, according to a consultation document published by The Bank of England, is to ensure that the UK's digital currency maintains the status of an anchor of trust and confidence in the country's monetary system.
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