Central Bank Digital Currency In The UK Faces Delay As Government Seeks Additional Research
The United Kingdom is not yet introducing a digital pound, according to a joint statement from the Bank of England and His Majesty’s Treasury.
In response to feedback from a consultation paper, the government and central bank emphasized the need for further study before deciding on the implementation of a central bank digital currency (CBDC). Unlike decentralized virtual currencies like Bitcoin and Ethereum, a CBDC would be controlled by a central authority, specifically a central bank. The consultation, which gathered input from 50,000 British citizens, businesses, and academics, highlighted concerns about privacy. The government assured that a digital pound would be private but not anonymous, unlike physical cash.
The paper emphasized that a digital pound would not replace cash, ensuring continued access to anonymous payment options. The UK government committed to introducing primary legislation and securing parliamentary approval before launching a digital pound, aiming to guarantee user privacy and prevent undue control over spending by the Bank of England or the government. While 130 countries, representing 98 percent of global GDP, are exploring CBDCs, China’s digital yuan is the most advanced, with a digital wallet rollout and salary payments in digital yuan in some provinces. A total of 64 countries are in advanced phases of CBDC exploration, including development, pilot programs, or launch.
Clever Robot News Desk 26th January 2024
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