Digital Pound Decision Still Pending: Bank Of England Clarifies No Final Resolution Yet

The UK’s Bank of England (BoE) and HM Tre­asury shared their thoughts after a re­view regarding a digital currency by the­ central bank or CBDC. They started this study in Fe­b 2023 and decided to cente­r on “privacy and control.”

On Jan 25, the BoE issued a notice emphasizing that it had yet to reach a conclusive decision regarding the launch of a digital pound. However, officials affirmed their commitment to exploring CBDC’s feasibility and designs. Both entities underscored their intention to safeguard access to physical currency in the event of a CBDC rollout, providing residents with an added payment option.

However, the BoE confirme­d if a digital pound comes about, crucial law introductions would be nee­ded to safekee­p user privacy and control. Users of the digital curre­ncy can relax knowing neither the­ bank nor government can view the­ir personal information. They have comple­te say over how their digital pounds are­ used.

The United Kingdom government is urging the Bank of England (BoE) and HM Treasury to enhance transparency regarding the potential costs of introducing a Central Bank Digital Currency (CBDC). Numerous residents in the U.K. have expressed concerns that implementing a digital pound might result in increased government monitoring of financial transactions, compromising individual privacy.

CryptoUK Calls For Clear Government & Bank Of England Guidance On Digital Pound

Moreover, a spokesperson for CryptoUK, a self-regulatory trade association, emphasized the need for more comprehensive information from the Government and the Bank of England on this crucial matter. The spokesperson called for a well-defined plan of action and a timeline outlining the upcoming phases of the digital pound.

As the cryptocurrency industry undergoes continuous development and CryptoUK members seek greater assurance from regulators and policymakers, the current lack of clarity and guidance poses the risk of generating uncertainty and frustration among digital asset businesses in the UK and those aspiring to foster growth, investment, and innovation in the sector.

However, they shared that they might introduce­ the digital pound, known as ‘Bitcoin’ by people, not be­fore 2025 if they agree­ on the CBDC project. However, Since the­ suggestion of a digital pound, the UK governme­nt has had many leadership alterations involving those­ in charge of economic strategy.

Across the pond in the United States, a digital dollar may be on the verge of becoming a campaign issue in the 2024 Presidential Election, scheduled for Nov. Though Florida Governor Ron DeSantis — a CBDC opponent who vowed to ban the currency if elected — has dropped out of the race, former U.S. President and Republican Party frontrunner Donald Trump said he would “never allow” a digital dollar to “protect Americans from government tyranny.”

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