The latest casualty of the difficulties hitting the…
HM Treasury and the Bank of England are consulting on a potential digital pound, or central bank digital currency (CBDC).
The consultation paper sets out analysis by HM Treasury and the Bank of England on the potential case for a UK central bank digital currency – a “digital pound” – and consult on the key features of a potential model.
A digital pound would be a new form of digital money for use by households and businesses for their everyday payments needs. As part of the wider landscape of money and payments it would sit alongside, not replace, cash – a digital counterpart to familiar, trusted banknotes and coins, subject to rigorous standards of privacy and data protection. This is in line with the ambition that public trust in money remains high, and that modern forms of money and payments meet the evolving needs of individuals and businesses.
Unlike crypto assets and stable coins, the digital pound would be a central bank digital currency or CBDC – sterling currency issued by the Bank of England and not the private sector.
Although it is too early to commit to build the infrastructure for a digital pound, the Bank of England and the Government are convinced that further preparatory work is justified to appropriately respond to the emergence of new technologies, international developments and fresh opportunities. In the four-month consultation period, officials in HM Treasury and the Bank of England will engage extensively across the UK to seek views on a potential digital pound. Responses to the consultation are invited from all interested members of the public, experts, and the widest range of organisations.
The deadline for responses has been extended to 11:59pm on Friday 30 June 2023. See: The digital pound: A new form of money for households and businesses? – GOV.UK (www.gov.uk)