UK to continue work on digital pound, but “no final decision has been made” on a potential launch
The Bank of England and HM Treasury say “no final decision has been made to pursue a digital pound” in the UK, but add that “work will continue during the design phase exploring its feasibility and potential design choices”.
BoE and HM Treasury respond to CBDC consultation
User privacy and control are set to remain at the forefront in the development of the proposed ‘Britcoin’ central bank digital currency (CBDC), the pair assured through a consultation response published this week.
The consultation was first launched in February 2023 to explore the feasibility of issuing a CBDC to UK businesses and consumers.
Delivering the corresponding response to that consultation, the pair say that although the 50,000-strong feedback was “largely supportive” of the proposals, several concerns remained around user privacy and financial control, as well as how the issuance of a CBDC would impact access to cash.
With these concerns in view, HM Treasury reaffirmed its guarantee that users’ privacy and control would be upheld, and that neither the bank nor the UK government would have access or control over users’ personal data or how they choose to spend the digital coin.
It was previously announced in July that UK-based decentralised identity and payment platform Nuggets had begun designing a “privacy-preserving identity layer” for the project.
In regard to the access to cash concerns, the consultation adds that the bank and government will retain a shared commitment to cash, as noted through new cash access laws proposed in December.
Bim Afolami, economic secretary to HM Treasury, comments: “We will always ensure people’s privacy is paramount in any design, and any rollout would be alongside, not instead of, traditional cash.”
The pair confirm that there will be a further public consultation on a digital pound prior to the introduction of primary legislation.
