Decision on digital pound over two years away, Bank of England says

Decision on digital pound over two years away, Bank of England says

The Bank of England (BoE) has announced that a decision on whether to introduce a digital pound, the United Kingdom's central bank digital currency (CBDC), is not imminent, with the design phase set to continue for the next couple of years [1]. The BoE and HM Treasury have been assessing the feasibility and potential design choices of a digital pound since launching a consultation in February 2023 [2].

Although no final decision has been made, the BoE has emphasized the potential benefits of a digital pound, such as providing greater choice, convenience, and innovation for households and businesses making everyday payments [2]. The central bank has also highlighted the importance of maintaining the UK's competitive position as a global leader in finance [2].

Despite the largely supportive feedback received during the consultation, concerns have been raised regarding the implications of a digital pound for access to cash, users' privacy, and control of their money [2]. To address these concerns, the BoE has confirmed that primary legislation would be introduced to guarantee users' privacy and control if a digital pound were to be implemented [2]. This legislation would ensure that neither the BoE nor the government would have access to users' personal data, and users would have freedom in how they spent their digital pounds [2].

As the design phase progresses, the BoE and HM Treasury will continue to explore the potential benefits and challenges of a digital pound, ultimately aiming to strengthen the UK's position as a competitive global leader in finance.

References:
[1] Reuters. Bank of England says it has not taken a decision yet on potential digital pound. Retrieved from https://www.marketscreener.com/news/latest/Bank-of-England-says-it-has-not-taken-a-decision-yet-on-potential-digital-pound-48753553/
[2] Bank of England and HM Treasury. BoE-HMT respond to digital pound consultation. Retrieved from https://www.bankofengland.co.uk/news/2024/january/boe-hmt-respond-to-digital-pound-consultation