UK Central Bank takes another step in implementing a digital pound

In a new development, the UK Central Bank takes another step in implementing a digital pound

Digital pound is the proposed Central Bank Digital Currency of the United Kingdom. 

The Bank of England in collaboration with the UK treasury released a 116-page consultation paper on February 7th, 2023. 

Apart from the consultation paper which explains the proposed Central Bank Digital Currency, a technology working paper was also released. 

The technology working paper gives an outline of the technical and economic design consideration. 

Currently, the global economy is saturated with privately issued stablecoin but Bank of England believe that it can coexist with other stablecoins in what was referred to as a “mixed payment economy” 

The digital pound 

The Bank of England and the UK treasury still have a sceptical perspective about the Central Bank Digital Currency. 

The digital pound is expected to be launched by 2025 but currently there is no 100% assurance that it will be launched at all.

According to the consultation paper, “for the digital pound to play the role that cash plays in anchoring the monetary system, it needs to be usable and sufficiently adopted by households and businesses.” 

While the consultation paper is a notable achievement. There’s a concern about privacy since users have to complete a kyc verification. 

This was addressed by the Bank of England which reiterates that the digital pound will not be anonymous but neither the government nor the Bank of England will have access to personal data. 

About Kumo

Kumo, registered as Kumo Technologies Inc in Delaware, U.S. is a fiat and crypto social payment app which allows users to exchange fiat (NGN) to crypto, save and earn interest in dollar with as low as $5, utility payment such as DSTV subscription, airtime, data among others.

Kumo wallet is your all-in-one social payment app for seamless payment solutions.

Website | Twitter | Facebook | Instagram | Email