The Bank of England (BoE) and UK Treasury stated that they have not yet made a final decision on whether to move forward with the proposed central bank digital currency (CBDC), aka the digital pound.
In a response published on Thursday to last year’s public consultation on a digital pound, the BoE and Treasury said they would continue researching and designing a potential digital currency. However, they noted that further work is needed before deciding if the introduction of a digital pound is justified.
The consultation gathered over 50,000 responses from the public, academics and businesses. Many expressed concerns about privacy and data protection in a digital pound system where money would be issued and held directly by the central bank.
To ease these worries, the BoE and Treasury pledged that new legislation would be introduced before any launch of a digital pound to protect users’ rights and prevent government access to personal data. Additional public consultation would also take place.
Economic Secretary to the Treasury Bim Afolami said the government wants to ensure the UK is prepared if a digital currency is pursued down the line. But he stressed “no final decision has been made” and traditional cash would continue being available alongside any digital option.
The BoE and Treasury indicated if further work leads to approving a digital pound, it likely would not launch until at least 2025. Any rollout would prioritize coexistence with physical cash, not replacing it.
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