New plans being drawn up by the Bank of England and the UK Treasury could see the UK public using a digital currency instead of cash by the end of the decade.
The government will start a four-month public consultation process this week.
The government wants to reassure the public that the digital currency would be as safe as cash instead of the volatility of private cryptocurrencies, especially after the collapse of crypto exchange FTX.
Bank of England governor Andrew Bailey said: “As the world around us and the way we pay for things becomes more digitalised, the case for a digital pound in the future continues to grow.
“A digital pound would provide a new way to pay, help businesses, maintain trust in money and better protect financial stability.”
Former chancellor and chair of crypto exchange Copper Philip Hammond had previously warned the UK is falling behind the European Union as a financial centre for digital assets.
He said: “The UK needs to be leading in this area post-Brexit. It’s allowed itself to slip behind. The EU is also moving faster. There has to be an appetite to take some measured risk.”
Research finance platform Solaris found only £7.5m worth of crypto transactions took place in London between January 2019 and September 2022.
Paris recorded a sum of £22m in the same period, the largest value of transactions in Europe. London was also outspent by Madrid, Berlin and Sofia.
Looking for your next crypto casino? Check out: Bitcasino, Gamb.co or FortuneJack.