The UK will ensure citizen privacy and control if it issues a digital pound

LONDON, Jan. 25 (EFECOM).- The British government and the Bank of England confirmed on Thursday that if they approve a digital pound sterling in the future, it will be regulated through a law that ensures citizens' privacy and control.

The two institutions jointly responded to concerns raised during an open public consultation in February 2023 about the possibility of issuing such a currency.

To address the concerns expressed by participants, they confirmed today that “if a digital pound is approved, legislation will be introduced to ensure user privacy and control.”

“The bank and government will not have access to any personal data and users will have freedom in how they spend their digital money,” they said in a statement.

They also promised to hold a new public consultation on the currency before the bill is taken up before Parliament, so that both the legislature and citizens can once again express their opinions.

The Conservative executive and the Bank of England confirmed that the use of cash will be protected in the UK, whether or not the digital currency is eventually approved.

The digital pound is now in the design phase, after which it is planned to publish a calendar of next steps, although it is not guaranteed, they say, that the initiative will go ahead.

The two institutions confirm in their memorandum that the function of the digital pound will be “to complete the role of cash in the digital world and give people more options when making their daily payments.”

The digital copy will have the same value as the paper, will be interchangeable with it, and will be issued by the Bank of England.

See also  Microsoft receives UK support for Activision

They will be accessed through digital wallets designed by the private sector for phones or smart cards, and will be used for payments made online, in stores and between individuals, but not for savings, as they will not earn interest.

The statement notes that initially, there will be restrictions on the number of digital pounds that individuals and companies can collect.

It also highlights that the coin will have intrinsic value and will be stable, because it is backed by the British Central Bank, unlike crypto assets that are not backed. Aficom

jm/prc/jlm

Leave a Reply

Your email address will not be published. Required fields are marked *