We’re all quite used to the fiat currency that we use for everyday transactions, but there are some who are pushing to change that where in the future, we might be able to use different forms of currency like cryptocurrency that is supposed to be more secure and also in a way, untraceable.
While we don’t know if cryptocurrency will become the standard of the future, the UK government is looking to perhaps launch their own digital currency down the road. Both the Bank of England and HM Treasury have announced that they will be exploring “a new form” of virtual money that can be used by both the private and public sector, although they do note that this digital currency won’t be replacing the current fiat currency that we know, but rather it is intended to complement banknotes and deposits.
However, obviously such an undertaking would have huge implications on the financial system which is why they are only exploring it as an idea for now. There is no guarantee that the UK will actually adopt their own digital currency, especially if their exploration does not yield enough benefits that outweigh the potential cons.
At the same time, it is interesting to see how governments and countries are looking to alternatives to the fiat currency that we are all familiar with, although we imagine it will be quite a while before any of this becomes the new normal.