The UK Treasury Department and the Bank of England said that consultations on the digital pound possibilities will begin next year. However, the final decision on its launch has not yet been made.
According to a publication on the website of the Central Bank of England, the digital pound will become a new form of money that will be used by individuals and organizations to make daily payments. It will be used on a par with cash, but it will not be a full-fledged replacement.
In 2022, the Treasury of the United Kingdom and the Bank of England will begin public discussions during which they will assess the benefits of the digital pound, the features of its model, use cases, as well as the main problems and possible consequences of its implementation for users and businesses.
“I encourage everyone to get involved in the discussion on the digital pound so that we can explore its possibilities and the potential challenges we face in the future,” said Treasury Secretary for Economic Affairs John Glen.
The Bank of England explained that while a task force has been created to explore the potential of the digital pound, the final decision on its launch has yet to be made. Based on the conclusions to be made during the upcoming consultations, the regulator will determine the feasibility of launching its own digital currency and further actions to develop it for the next few years.
We are talking about the development of the concept, the technical characteristics of the digital pound and its in-depth testing. If the central bank concludes that the arguments for the digital pound, its functionality and security are justified, the launch of the central bank’s digital currency could take place in the second half of this decade.
“Next year’s consultation on the digital pound is an important step that will enable stakeholders and target groups to interact with each other on the key dimensions of the digital pound. After that, a decision will be made whether the Central Bank should move to the development of its own digital currency, ”said Deputy Governor of the Bank of England Jon Cunliffe.
According to a survey by Redfield & Wilton Strategies, 30% of Britons fear the introduction of the digital pound and believe that it has more disadvantages than advantages.
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