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End of pound: How frail currency will be replaced with new system which could SAVE us all

THE pound could soon be replaced by a digital currency that is threatening to create a cashless society.

Britain is fast approaching this reality, with 55% of purchases being made by card in 2016 compared to 35% a decade ago.

14% of UK consumers also no longer carry or use cash compared to 4% in 2005.

Experts believe that central banks could keep a more watchful eye on digital economic activity and be better placed to prevent a financial disaster – 10 years after 2007’s crash.

More Brits are now opting for Bitcoin – a digital currency that has soared in value and is worth more than a nugget of gold.

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CURRENCY: Will we soon see the end of the pound?

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COVETED: Digital currency Bitcoin has soared in value and is worth more than a nugget of gold

It was created in 2009 by an unknown computer whizz using the alias Satoshi Nakamoto.

Individual Bitcoins are created by computer code, with a maximum number that can exist under 21 million.

There are currently around 16 million in circulation, and more businesses are beginning to accept them.

People use virtual wallet websites like Blockchain to store, keep track and spend their digital money.

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“I believe it’s the currency of the future”

Baroness Michelle Mone

People are also able to purchase the cryptocurrency through an online exchange or Bitcoin ATM.

Last week, an underwear entrepreneur launched a luxury property development in Dubai priced in the cryptocurrency.

Baroness Michelle Mone and her billionaire boyfriend are planning to sell 150 of the 1,133 homes using the “currency of the future.”

The couple said everyone should be looking to buy Bitcoin, as its price has more than quadrupled over the past year.

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She told Express.co.uk: “It’s definitely not a bubble, it’s real. It’s easy for people to trade between one another, it’s fast – it is secure.

“We’re making money out of it. I’m a Baroness in the House of Lords, if there was anything untoward, I wouldn’t be doing it. I believe it’s the currency of the future.”

Like physical currency, the value of Bitcoin is determined by how much people are willing to exchange for it.

To process the transactions, a process called “mining” must take place where a computer solve a difficult mathematical problem with a 64-digit solution.

On September 2, a Bitcoin was traded for a record high of £3,838.

However, the digital currency does pose some economic dangers.

Due its anonymous nature, Bitcoin can be employed by criminals to keep their illicit activities a secret online.

During the NHS cyber attack in May, hackers demanded NHS staff pay ransoms of £233 per computer via Bitcoin to regain access to their systems.

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