The Treasury and the Bank of England say a state-backed digital pound is likely to be launched later this decade, Both institutions want to ensure the public has access to safe money that is easy to use in the digital age.
Chancellor Jeremy Hunt says the central-bank digital currency could be a new trusted and accessible way to pay however it will not be built until at least 2025.
Mr. Hunt says they want to investigate what is possible first, whilst always making sure we protect financial stability.
The Treasury and the Bank of England will formally start a consultation for the digital currency.