The Bank of England (BoE) launched a public consultation on the launch of a central bank digital currency (CBDC) on Tuesday, it was officially reported.
The BoE reported that it will carry out more research and development work and invited the public to give their opinion on the scheme that will be carried out.
The entity clarified that, if implemented, the digital pound would be interchangeable with cash and bank deposits, complementing cash and offering a new form of reliable, accessible and easy-to-use everyday payment via smartphones and smart cards.
Thus, unlike crypto assets and stablecoins, the digital pound would be issued by the Bank of England and not by the private sector, for which they are already legislating separately to protect access to cash.
The objective is ensuring the public has access to secure money that is convenient to use as everyday life becomes more digitalwhile supporting private sector innovation, choice and efficiencies in digital payments.
In a statement, Chancellor of the Exchequer Jeremy Hunt said that while cash is here to stay, a digital pound issued and backed by the Bank of England could be a reliable, accessible and easy-to-use new form of payment.
“Therefore, we first want to investigate what is possible, always making sure to protect financial stability,” he stressed.
Bank of England Governor Andrew Bailey added that as the world around us and the way we pay for things becomes more digital, the possibility of a digital pound in the future continues to grow.
“A digital pound would provide a new way to pay, help businesses, maintain trust in money and better protect financial stability,” he said.
However, he indicated that there are a number of implications that the technical work should carefully consider.
Countries around the world are considering similar proposals, including the euro zone, the US and China.
The decision on whether to implement a digital pound will be made around 2025 and will be largely based on the future evolution of money and payments.
