You may also hear it being called 'digital sterling' or even 'Britcoin'. We call the UK version of CBDC the digital pound. The digital pound would be denominated in sterling and its value would be stable, just like banknotes. £10 in digital pounds would always have the same value as a £10 banknote.

While the UK is not "replacing" cash entirely in 2026, it is shifting toward a "multi-money" ecosystem where the Digital Pound (a Central Bank Digital Currency or CBDC) is the primary focus. The Bank of England and HM Treasury are currently in the design phase of this "Retail CBDC," which would allow citizens to hold digital currency directly with the central bank, offering a level of security similar to physical cash. This is being developed alongside the rise of stablecoins and contactless mobile payments (Apple/Google Pay), which already account for the majority of UK transactions. The Digital Pound is intended to "complement" cash, ensuring that as physical banknotes become less common in daily use, there remains a public, government-backed alternative to private bank-led digital payment systems.