The digital pound

Claims Supported by This Source

1. The Bank of England is considering whether to issue a digital pound (CBDC) and has not yet decided to do so. If it were to be issued, the earliest would be the late 2020s.
2. The digital pound would not replace cash. The Bank will continue to issue banknotes as long as people want to use them.
3. Like banknotes, it would be issued directly by the Bank of England, and £10 of the digital pound would always be worth the same as a £10 banknote. It is not a cryptoasset and is backed by the government.
4. Users would not open an account with the Bank of England but would hold it in a digital wallet provided by private companies such as banks or payment firms.
5. It would not pay interest (same as cash). There are plans to set a limit on holdings, but the level is yet to be decided.
6. A public consultation was launched in February 2023. A progress report is due in January 2025, and a report on the design phase in October 2025. Before introduction, there will be a parliamentary vote and further public consultation.
7. Future legislation will guarantee user privacy, ensuring that neither the Bank of England nor the government can control how it is used.

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