The Bank of England and the HM Treasury sent detailed responses to the digital pound consultation while confirming that work during its design phase will continue.
The consultation paper on the digital pound was released almost a year back, in February 2023. The Bank of England and the HM Treasury recently published their responses to the digital pound consultation. User privacy and control of funds claimed the most importance in the responses. As a result, the UK government has also pledged to create digital currency legislation before creating a digital pound.
The consultation received thousands of responses from several organizations and industries. While most responses were positive, others raised concerns on a few issues. As a result, before the government enacts digital currency legislation, more consultations will likely occur.
Bank of England’s Deputy Governor Sarah Breeden said, “Trust in all forms of money is an absolute necessity. We know the decision on whether or not to introduce a digital pound in the UK will be a major one for the future of money. It is essential that we build that trust and have the support of the public and businesses who would be using it if introduced.”
The digital pound’s final decision will occur after its design phase. The government and the central bank will take the joint decision. Bim Afolami, Economic Secretary to the Treasury, also stated users’ privacy was paramount.
If the digital pound is rolled out in the UK, CBDC adoption in the country could get a big boost. In other countries, most central banks have advocated for CBDC adoption. China, a huge proponent of a digital yuan, is an unlikely winner in this. It was also in the news recently for a few CBDC adoption exercises in Shanghai.
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