On 7 February 2023, HMT and the BoE published a joint consultation, which sets out the analysis by HMT and the BoE on the potential case for a UK central bank digital currency – a “digital pound”, and consult on the key features of a potential model.
Unlike crypto-assets and stablecoins, the digital pound would be a central bank digital currency (CBDC) – sterling currency issued by the BoE and not the private sector.
Although it is too early to commit to building the infrastructure for a digital pound, the BoE and the Government are convinced that further preparatory work is justified to appropriately respond to the emergence of new technologies and international developments.
The BoE is seeking feedback on the questions in the Consultation Paper and it will help to inform its future technology work. Responses from stakeholders and technology experts to the paper are invited until 7 June 2023.
