Digital Libra (CBDC UK): Government will guarantee user privacy with legislation
The Bank of England and the Government have published a statement in which they state that they will not have access to users' personal data.
The Bank of England says the digital pound would include primary legislation to ensure user privacy and control.
Authorities are also committed to maintaining access to cash for those who prefer it and say continued work on digital currency will strengthen the UK's position as a competitive global leader in finance.
No decision has yet been made on the creation of a digital pound (CBDC).
A digital pound would complement the role of cash in a digital world and give people more choice about how to make everyday payments.
£10 of a digital pound would always be worth the same as £10 in notes or coins.
It would be intended for payments online, in stores and between individuals, and would not pay interest.
There would be restrictions, at least initially, on how much an individual or company could own.
Like banknotes, it would be a claim against the Bank of England, would have intrinsic value and would be stable, unlike unbacked cryptoassets.
People's privacy
The Economic Secretary to the Treasury, Bim Afolami, indicated that they will always ensure that people's privacy is paramount in any design, and any implementation would be alongside traditional cash, not instead of it.
“We are in an exciting time of innovation in money and payments, and we want to make sure the UK is prepared should the decision be made to build a digital pound in the future. “This is the latest stage in our national conversation about the future of our money, and it is far from the last,” Afolami said.
Source: Observatoryblockchain.com
