The UK Treasury and the Bank of England (BoE) have released their comments in response to a consultation document proposing a digital pound.
In response to a “digital pound” consultation document from last February, the UK Treasury and the Bank of England have released their comments.
It is too soon to say if a digital pound is essential, according to the BoE and UK Treasury’s answer issued on Thursday. But it vowed to keep working on a central bank digital currency (CBDC) and has announced its intention to do so.
The statement from the Bank of England and the Treasury said that the design phase for the digital pound will remain focused on studying the viability of the UK having both a retail and a wholesale CBDC. Furthermore, it was said that the possible introduction of a digital pound would not take place until 2025.
“Two people who took part in the survey said that new laws will solve worries about privacy and trust with a digital pound. To address these issues, the publication clarified that primary legislation would be presented before the launch of any digital pound,” both the Treasury and the BoE said.
In addition, the statement verified that, in the event of a retail CBDC launch, neither the BoE nor the UK Treasury would be privy to any customer data.
“Having faith in monetary systems is crucial. The decision to launch a digital pound in the UK is sure to have far-reaching implications for monetary policy in the years to come. Deputy Governor for Financial Stability Sarah Breeden of the Bank of England stressed the need to gain the confidence and support of the people and companies who will be using it once it is implemented.”
Also Read: Polygon’s AggLayer protocol for blockchain integration, planned to debut in Feb January 25, 2024
Wallets