With the Digital Pound on the Horizon in the UK, Here’s How Traders Can Capitalise on the Boom with Kraken

cryptonews.com:

With the use of physical cash dwindling and digital payments becoming the new norm, the UK government is warming up to the idea of a digital pound.

The technical feasibility of using existing POS terminals to initiate digital pound payments is already being tested. While it hasn’t been decided if the UK will launch its own Central Bank Digital Currency (CBDC) yet, the Bank of England has started experimenting and developing proof-of-concept (PoC).

As the digital pound moves closer to becoming a reality, here’s how to position yourself to take full advantage of this new landscape.

So, what is CBDC? A central bank digital currency, or CBDC, is money issued by a country’s central bank, just like your physical fiat money. However, it is issued in a digital form. In the UK, the Bank of England will issue the digital pound, which will hold the same value as the money you store in a bank account and use for everyday payments.

More than 130 jurisdictions are exploring a CBDC, including the UK, which is currently in its design phase.

Once launched, the Bank of England CBDC is expected to promote trust and confidence in a country’s money and payments while enabling financial innovation and helping the unbanked engage in financial transactions more effectively. It will also improve cross-border payments, open another avenue to monetary policy, and contribute to financial stability.

Unlike digital assets, which are issued privately, CBDCs are issued by the central bank, and the government backs their value. So, the launch of the fiat currency equivalent would not replace crypto but rather complement it, bringing several benefits to the sector.

For starters, a digital pound aims to address issues related to efficiency and access to the