Bank of England: We Have Not Made a Decision on the Digital Pound
The United Kingdom’s Bank of England (BoE) and HM Treasury have released their response to a consultation on a central bank digital currency (CBDC) launched in February 2023, stating that their main focus will be on “privacy and control.”
According to a notice released on Jan. 25, the BoE clarified that no final decision has been made yet on launching a digital pound, but they will continue to explore the feasibility and design of a CBDC.
Both institutions expressed their commitment to protecting residents’ access to cash, should a CBDC be launched, to provide an alternative payment option.
In the event that a digital pound is implemented, the BoE assured that primary legislation would be introduced to guarantee users’ privacy and control.
They emphasized that neither the BoE nor the government would have access to any personal data, and users would have the freedom to use their digital pounds as they please.
As the UK government has been urging greater transparency on the potential costs of a CBDC launch, many residents have expressed concerns that it could lead to government surveillance of financial transactions and a loss of privacy.
