The UK is working on a digital pound.
The Treasury and the Bank of England are keen to debut the currency - which is being dubbed as a safe way to spend money in the digital age - before the close of this decade.
The Chancellor of the Exchequer Jeremy Hunt labelled the central-digital currency as a possible “trusted and accessible” method of payment but would not be available until after 2025.
He added to BBC News: "We want to investigate what is possible first, whilst always making sure we protect financial stability.”
The formal consultation for the currency is believed to begin on Tuesday (07.02.23) via the two economic bodies.
Due to being backed a central bank - unlike other cryptocoins like Bitcoin and Ethereum - would be less explosive than similar currency as its value would be tied to something and 10 pounds in cash would be worth the same as 10 in digital money, according to the Treasury.
When he was Chancellor, the current Prime Minister Rishi Sunak requested the Bank of England - which is led by Andrew Bailey - to research the potential of supporting a currency like this.
In October last year, Andrew Griffith, the current financial services minister outlined that a hindrance to this plan coming to fruition could hurt the economy.
The following month, the Bank of England launched a consultation on a CBDC.
They said: "A technical specification would follow the consultation explaining the proposed conceptual architecture for any CBDC.
"This could involve in-depth testing of the optimal design for, and feasibility of, a UK CBDC."
