We use cookies to improve your website experience. To learn about our use of cookies and how you can manage your cookie settings, please see our Cookie Policy. By continuing to use the website, you consent to our use of cookies. Close

In for a penny - in for a digital pound?

Compliance Monitor

In for a penny - in for a digital pound?

On 7 February 2023, the joint Bank of England-HM Treasury CBDC Taskforce published a consultation paper on a potential retail UK central bank digital currency (CBDC). This 'digital pound' would be a new form of sterling, similar to a digital banknote, issued by the Bank of England for everyday use by households and businesses. Charlotte Hill and Mila Pencheva consider the case for a CBDC, the proposed model and key milestones.

At the outset, the Taskforce [1] makes it clear that while it is likely a digital pound will be needed in the future, it is too early to commit to building the infrastructure, being a major piece of national infrastructure likely to require several years to complete. The digital pound will require the backing of deep public trust as to safety, accessibility and privacy, built through an open national conversation about the future of money alongside detailed technical consideration by experts. This consultation [2] is aimed at starting this conversation and beginning to build that foundation of public trust.

The rest of this document is only available to i-law.com online subscribers.

If you are already a subscriber, click login button.