Bank of England Launches Digital Pound CBDC
Bank of England launches its digital pound CBDC project, with the intention of creating a new form of money for households and businesses. Moreover, the project has been in the works for some time, and an official consultation paper distributed by the Bank of England and HM Treasury outlines the new project and its various facets.
What is the Digital Pound CBDC?
In addition, the Bank of England’s digital pound CBDC project aims to create a new form of digital money for everyday use by households and businesses. According to the consultation paper, the digital currency will be issued by the central bank and will be accessible through digital wallets. Furthermore, the digital pound is intended to “sit alongside, not replace, cash” and will be a digital counterpart.
Introduction Phase of CBDC
Additionally, during the introductory phase of the CBDC, the consultation paper outlines a potential limit on the amount held by each individual. The suggested limit ranges from £10,000 to £20,000, to “strike an appropriate balance between hanging risks and supporting wide usability of the digital pound.” Moreover, the report acknowledges that it is too early to take the decision on whether to introduce the digital pound and that this decision will be made in the coming years, based on developments in money and payments and the findings from investigating further operational features and technology.
Benefits of the Digital Pound CBDC
In addition, the consultation paper notes the potential for private sector innovation and the diversification of payments in the UK as benefits of the digital pound CBDC. The report acknowledges that the development of the digital pound will occur over a period of years and that the need for digital payments in the UK will only be determined by observing the evolution of the payments landscape in the UK and abroad.
Ultimately, the launch of the digital pound CBDC project is a significant milestone for the digital asset industry, although the introduction of the digital pound is still a long way away. CBDC project aims to create a new form of digital money for everyday use by households and businesses. The introductory phase of the CBDC outlines a potential limit on the amount held by each individual, with a suggested range of £10,000 to £20,000. The development of the digital pound will be determined by observing the evolution of the payments in the UK and abroad.