The Bank of England is still considering the introduction of a central bank digital currency while setting high regulatory standards for stablecoins.
Exploring CBDC
Andrew Bailey, the new governor of the Bank of England, has confirmed that the Central Bank is continuing its exploration of creating a digital currency. The digital pound project is supported by various initiatives, including the establishment of a new 'Digital Pound Lab' to experiment with potential use cases.
Support and Initiatives
Former Prime Minister Rishi Sunak was a strong advocate of the project as finance minister, launching a task force focused on the digital pound development. Despite these initiatives, the project remains in the design phase, with a final decision on issuance years away.
Concerns and Future
The digital pound initiative has received over 50,000 responses, with privacy issues being a major concern. In late 2023, lawmakers called for lowering holding limits for the digital pound. The current government appears hesitant to launch.
The future of the digital pound remains uncertain as the government hesitates to launch. Complex issues of privacy and regulation require further study.
