Advertisement

Updated January 25th, 2024 at 18:15 IST

UK's digital Pound plans await legislation amid privacy concerns

Introduction of virtual money would come before new laws designed to protect users' privacy, officials expect.

Business Desk
Pounds
Pounds | Image:Unsplash
Advertisement

Digital British Pound: The introduction of a digital British pound is on hold as the Bank of England and the finance ministry have announced their intent to conduct additional consultations. The potential rollout of the digital currency would be preceded by new legislation aimed at safeguarding users' privacy.

The two institutions clarified that any decision to proceed with a digital pound would be considered no earlier than the mid-2020s. In the preceding year, they had sought public feedback on the prospect of a digital pound, and the responses received were largely supportive, as disclosed on Thursday.

Advertisement

Privacy apprehensions

While the majority of feedback favoured the concept, some respondents expressed apprehensions regarding issues such as access to cash, control over their finances, and user privacy. To address these concerns, the BoE and the Treasury emphasised the need for primary legislation before the launch of a digital pound.

Advertisement

This legislative move aligns with similar preparations underway in the euro zone for the potential introduction of a digital euro. The proposed legislation would guarantee user privacy and establish that neither the Bank of England nor the government would have control over how the digital pound is used.

The BoE and the Treasury issued a joint statement, asserting, "There will also be a further public consultation on the digital pound prior to the introduction of primary legislation." This commitment to transparency and public input reflects the authorities' cautious approach to ensuring that the introduction of a digital pound addresses privacy concerns and garners broad support from users.

Advertisement

(with Reuters inputs)

Advertisement

Published January 25th, 2024 at 18:15 IST

Your Voice. Now Direct.

Send us your views, we’ll publish them. This section is moderated.

Advertisement
Advertisement
Advertisement
Advertisement
Advertisement
Whatsapp logo