Re: But why is this necessary?
Bitcoin is a very good way of running a ledger. It is a bearer asset and really the only digital equivalent of handing over cash. The ledger is fully descentralised and requires very little hardware to run; a Raspbery Pi is sufficient. The ledger does use a lot of energy for securing transactions via proof of work mining but this ensures that no one can manipulate the supply, which a central bank can so. Ethereum wth its more energy efficient proof of stake sacrifices this. There is also the lightning network which runs as a layer on top of the Bitcoin protocol allows much faster and cheaper transactions.
Britcoin (digital pound) may not be as volalite as Bitcoin but it also has no intinsic value and is not backed by anything other than trust in the Bank of England and the Government.