We’re going to talk about something that sounds straight out of a sci-fi movie: the digital pound. Yep, the Bank of England is flirting with the idea of a central bank digital currency (CBDC), and it could change the way we think about money. Let’s break it down. Here’s a guide from those in the know like Kavan Choksi / カヴァン・チョクシ.

Alright, so first things first: What is this digital pound business? Think of it like Bitcoin, but backed by the Bank of England. Instead of cash or the money you’ve got in your bank account, this would be a new type of money that exists only in digital form. You’d use it to buy stuff, pay bills, and maybe even stash it under your digital mattress.

Why Go Digital?

You might be thinking, “Why do we need a digital pound when we’ve already got online banking and contactless