The Chairman of NatWest Bank has set this schedule for the UK CBDC Pilot.

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Many countries have been more than happy to construct a central bank digital currency [CBDC] rather than adopt bitcoin. The United Kingdom [UK] is one such country that is seeking to regulate the use of cryptocurrencies within its borders. According to NatWest bank chairman Howard Davies, the construction of its digital pound might begin within a few years.

Although the Bank of England is still deliberating whether to support the idea of a sterling CBDC, the major retail and commercial bank believed it was a logical development. Davies noted during an event,

“I suspect that within three to five years we will see that operating in the UK on a sort of pilot basis to start with.”

As the cash continues to flow out of the economy, Davies believed that CBDC could be a logical development, although problematic from a banking perspective.

However, the Head of Future Technologies at the Bank of England, William Lovell recently shared that the BoE “is actively exploring the case for a possible central bank digital currency (CBDC)” but “no decision has been made at this time.”

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While tooting the benefits of a central bank digital currency, Davies took a shot at Bitcoin calling it “environmentally disastrous” and of no use for transactions apart from buying cocaine on the dark web.

He added,

“It’s not a store of value, it’s too volatile.”

The governor of the central bank, Andrew Bailey shed some light on the development of CBDC at the same event, and noted that BoE and the UK were not behind in terms of CBDC development.

Bailey stated,

“We have to answer the question – exactly what problems are we sorting out here? We have got to be very clear on what it is that we think the digital currency will do, and what it will do to improve the system.”

The United Kingdom may not believe it is falling behind in building the CBDC, but with the European Central Bank pushing for a digital euro and expecting a launch within the next five years, the country may want to get its act together. Meanwhile, despite the wariness of the central bank towards crypto, the UK post office’s “EasyID” app recently introduced the option to buy bitcoin, this week onwards.

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