British Treasury and Bank to explore potential for digital pound

Digital currencies are already being explored or even implemented in several other countries. 

A digital currency could benefit cross-border payments. Picture: Dominic Lipinski/PA

The UK Government will set up a new taskforce to explore whether the UK should have its own digital currency, one of a series of possible reforms designed to benefit the financial technology sector.

The Bank of England and the Treasury will jointly explore the objectives of establishing a central bank digital currency, and explore the risks as well as the benefits.