The Bank of England and HM Treasury have released their response to the consultation on a digital pound, which was initiated in February 2023. It should be noted that no final decision has been made to proceed with the implementation of a digital pound, also known as a central bank digital currency (CBDC). The focus will now shift towards the design phase, where the feasibility and potential design options will be explored. This analysis will examine how a digital pound could be utilized within the UK economy, offering increased convenience, choice, and innovation for individuals and businesses engaging in everyday transactions. Additionally, this work will contribute to enhancing the UK’s position as a competitive global leader in the finance sector. The feedback received from various industries and organizations was predominantly supportive of the proposed design outlined in the 2023 Consultation Paper. However, some respondents expressed concerns regarding the impact of a digital pound on access to physical cash, user privacy, and control over their finances.
HomeCBDCDigital Pound UpdatesBank of England and HM Treasury address feedback on digital pound consultation