Bank of England
Bank of EnglandiStock

The UK is considering creating its own central bank-backed digital currency, dubbed “Britcoin.”

The currency would solve some of the issues the country faces dealing with cryptocurrencies like bitcoin.

The Bank of England-backed digital currency holds the potential to allow consumers and businesses to obtain digital wallets directly with the central bank. This would remove the middleman and give the bank a renewed role.

British finance minister Rishi Sunak, speaking at a financial industry conference, said that the Bank of England and the Treasury have launched a Taskforce to explore the creation of the currency, reported Reuters.

The minister subsequently tweeted the word “Britcoin.”

Other central banks, include the EU, are examining whether to set up their own digital currencies. The funds would allow consumer and business access to money only commercial bank can currently access. The move has the potential to increase the rate of domestic and foreign payments and stabilize the financial system.

"The government and the Bank of England have not yet made a decision on whether to introduce a (central bank-backed digital currency) in the UK, and will engage widely with stakeholders on the benefits, risks and practicalities of doing so," stated the Bank of England.