CBDC: BOE has released key findings on the digital Sterling!

Many countries have taken an interest in central bank digital currencies (CBDCs) over the past few years. The UK has been working on the issuance of a digital pound sterling. The project has raised privacy concerns among many individuals. The Bank of England and the Treasury have finally published the results of the consultation, providing clear responses.

Legislation Will Be Required for Privacy Protection

The Bank of England and the Treasury published on Thursday the results of the consultation on the digital pound sterling, a CBDC. Individuals who saw this project as a risk to privacy have received answers. This was the main concern addressed during the consultation that concluded in June. The results indicate a cautious approach from stakeholders. Sarah Breeden, Deputy Governor of the Bank of England, emphasized the importance of trust in all forms of money. The decision to introduce this currency or not will be decisive for the future of money, she added.

Therefore, the government has stated that it will introduce primary legislation before the issuance of the digital pound. The legislation will ensure that the government cannot program a digital pound. As of now, the decision on whether or not to issue the digital pound sterling has not yet been made. It will likely happen between 2025 and 2026.

The UK will step up work on designing a digital version of the pound https://t.co/PZFjDfe4ub

— Bloomberg Crypto (@crypto) January 25, 2024

A Holding Cap Set at 10 to 20,000 Pound Sterling

Another noteworthy point from the consultation results is the set cap. The Treasury Select Committee had proposed a holding limit of less than 3,000 euros. However, the Bank of England responded in its results that the cap will be from 10,000 to 20,000 pounds sterling, approximately 12,727 to 25,460 dollars. It will not incur interest rates either.

The digital Pound Sterling will be accessible abroad, except in sanctioned countries. But for now, work on the digital pound sterling is only in its initial stages. The Bank of England will continue public consultation before introducing legislation.