Britain must not get left behind in rapid financial innovation and it was getting closer to deciding "when, rather than if" it would issue a digital version of sterling, its financial services minister said on Wednesday.

The finance ministry and Bank of England launched a public consultation in February on preparing the ground for a possible digital pound that was likely to enter into circulation in the second half of this decade.

Although no final decision has been taken, Britain's financial services minister Andrew Griffith said on Wednesday that Britain needed to embrace changes in payments and not hold back the tide.

"We would not commit the time to the consultation if we didn't think we are getting closer, we are not there today, but we are getting closer to the point that if becomes a when and not and if," Griffith told an event held by OMFIF think tank.

Britain must not be left behind global innovation in payments with non-cash forms of payments already accounting for 85 per cent of payments and still growing, Griffith said.