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.”
Related Reading | ETH Heist Reversed: Socket Protocol Recovers Two-Thirds Of Stolen Cryptocurrency
The author’s views are for reference only and shall not constitute any investment advice. Please ensure you fully understand and assess the products and associated risks before purchasing.
Comments (No)