The subject of our article is the technology we use to pay our bills in England. Of course, this involves the banknotes in England. According to governor Mark Carney, it is time for a “revolution in payments”. This will be done by looking at electronic payments. The idea here is to replace paper banknotes mostly when it comes to general payments. It happens that the total value of banknotes in the UK economy was close to an all-time high. However, people had been making fewer payments in cash, something that is calling some attention.
Nowadays, we usually pay our bills using our credit cards. Although we continue to use cash to do it as well, if you compare the number of payments made by a typical adult each month of 2018, it sums slightly more than half the number of adults that make their payments using a card. Taking this into consideration, the Bank of England is considering a Central Bank Digital Currency. Of course, it would be denominated in pounds sterling, like the regular banknotes. Thus, £10 of this new digital currency would always be worth the same as a £10 note.
Understand what is changing when it comes to banknotes in England
This has nothing to do with cryptocurrencies
If you are interested to know more about the future of banknotes in England, know that the Central Bank Digital Currency will not be similar to the cryptocurrencies we know. It will be guaranteed by the Bank, rather than a commercial business.
If you like to use cash, you will be able to do it anyway
We are not talking about a dramatic change in the way you like to do your payments. If you prefer to use cash, it will be a possible option for a while. However, if the reason for keep using cash is the anonymity of your data, there is no reason for concern. According to the Bank of England, with the Digital Currency, consumers will pay for things without their transactions data going to their bank.
It seems that the future of banknotes in England is coming to an end. But, this is not true only for England. Other central banks around the world are investigating how to implement digital currency too. Even if you are fond of cash, it seems plausible to prepare for some changes. In order to know more about finances and the economy, continue to read our articles!