The Bank of England and HM Treasury recently released a consultation paper on the digital pound, an exciting new central bank digital currency (CBDC). With this announcement, Britain takes a major step forward in its CBDC plans. The proposed CBDC will be available to both households and businesses, allowing them to make everyday purchases. Not only will it be accepted in stores or used for online shopping, but will also be transferable between parties. This means it could eventually replace the need for cash and bank deposits, making payments incredibly convenient
The digital pound is also set to be highly secure and in line with the latest data privacy and protection standards. It will also be accessible via mobile phones, so people can also manage their digital pounds with a virtual wallet.
Today the Bank of England and @hmtreasury have published a Consultation Paper on the digital pound, a UK central bank digital currency. Find out more here: https://t.co/jISyz0kvtb pic.twitter.com/KhYOY0Dlaz
— Bank of England (@bankofengland) February 7, 2023
Some Recent Stats!
The bank recognized that cash transactions were on the wane, reinforcing its pursuit of a digital economy. As seen in 2021, card payments made up nearly 60% of all payments in the UK, and 32% were contactless. Nevertheless, they don’t intend to get rid of cash completely yet, as it is still in demand for some people. Significantly, the paper indicated that the Bank of England and the government would not access any personal data. This declaration should address some concerns that CBDCs are being applied as financial monitoring tools by governments.
All About The CBDC Ecosystem
The Atlantic Council’s CBDC tracker shows that 11 nations have launched a Central Bank Digital Currency (CBDC), with all of them located in the Caribbean apart from Nigeria. Additionally, 17 nations are piloting CBDCs, with a majority of these in Asia. The UK is still in the developmental phase of its rollout, with 33 other countries also in this stage. In related news, the Switzerland-based Bank for International Settlements (BIS) recently announced its plan to focus significantly on CBDCs in 2023 to improve payment systems.