The Bank of England (BoE) and HM Treasury have recently published their response to the consultation on a possible Central Bank Digital Currency (CBDC) in the UK.
On the 25th of January, they remarked that no final decision had been made concerning issuing a digital pound.
The BoE stated that primary legislation would guarantee users’ privacy and control over a digital pound.
The bank and government would have no access to personal data, and people would be free to spend funds. This comes after calls from UK residents to avoid government monitoring of transactions that a digital currency may enable.
CryptoUK, a trade association, said more clarity is needed on the timeline and next steps for potentially launching a digital pound nicknamed Britcoin. They warned the lack of direction creates uncertainty for digital asset businesses in the UK.
The BoE and Treasury expect to launch a digital pound no earlier than 2025 if they create a CBDC. The proposal continued as the UK government has undergone leadership changes since its introduction.
Also Read: Bank of England Chief Doubts Bitcoin as Payment Method
