Bank of England says ‘no final decision has been made’ on digital pound

The UK's Bank of England (BoE) and HM Treasury have released their response to the February 2023 consultation on a central bank digital currency (CBDC), saying they intend to focus on “privacy and control”.

In a January 25 announcement, the BoE said “no final decision has been made” regarding the launch of a digital pound, but officials will continue to explore the feasibility and designs of a CBDC. Both institutions intend to “maintain funding” if they move forward with the CBCC launch, he added, giving residents more payment options.

“[I]The FA should implement a digital pound, introducing a first-class rule, which will ensure users' privacy and control, Boe said. “The bank and the government will not have access to any personal information and users will be free to spend their digital pounds.”

Today, we respond to the digital pound consultation. Thanks to those who contributed. Work by @HMTreasury continues to explore a digital pound in the design phase, but no decision has been made to issue one.

You can read our response here: pic.twitter.com/IwN58h7rNf

— Bank of England (@bankofengland) January 25, 2024

The UK government has been pushing the BoE and HM Treasury to provide more transparency around the BBC's start-up costs. Many UK residents have pointed out that the launch of a digital pound could lead to government surveillance of financial transactions and loss of privacy.

“[W]”I would like to see more detail from the government and the Bank of England on this important issue, including a clear action plan and timetable around the next steps for the digital pound,” said a spokesperson for self-regulatory trade association CryptoUK. “As the industry continues to evolve and our members This current lack of clarity and direction creates uncertainty and frustration for crypto digital asset businesses in the UK and those looking to build, invest and grow the industry as they demand more certainty from regulators and regulators. He said.

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The BOE and HM Treasury have said they should not push ahead with the CBCC plan to use the digital pound, dubbed ‘Britcoin' by certain sections of the public, before 2025. The UK government has made a number of changes in leadership since the digital pound was first introduced, including officials responsible for overseeing economic policy.

Across the pond in the United States, the digital dollar may be on the verge of becoming a campaign issue in November's 2024 presidential election. Although Florida Governor Ron DeSantis – a CBDC opponent who has vowed to block the currency if elected – dropped out, former US President and Republican front-runner Donald Trump said he would never allow a digital dollar to protect Americans from the government. tyranny”

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