Introducing a digital pound could earn the Treasury tens of billions through increased seigniorage revenue, a new report has argued. Research from Positive Money estimates that, by 2029, the government could gain around £15bn a year if 20 per cent of bank deposits were switched to a digital pound. If 30 per cent of deposits were switched into a digital pound, the Treasury could earn an additional £30bn a year through seigniorage revenue, the report argued.
Seigniorage is the profit made by a government for issuing currency. It captures…Digital Pound Could Be a Fiscal Game-Changer for the UK
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