Digital pound progresses in design phase

While a final decision has yet to be made, the Government and Bank of England look likely to press ahead, and many consider the central bank digital currency to be an inevitability. Charlotte Hill and Daniel Hirschfield review the latest tranche of regulatory papers on the digital pound and consider what lies ahead.

Charlotte Hillis a partner and head of the Financial Services Regulatory group at Taylor Wessing in London, whereDaniel Hirschfieldis senior counsel - Knowledge. Contact them onc.hill@taylorwessing.com andd.hirschfield@taylorwessing.com.

On 25 January 2024, the Bank of England (the 'Bank') and HM Treasury published their response (the 'Response') to their consultation of 7 February 2023 (the 'Consultation Paper') entitled, 'The digital pound: a new form of money for households and businesses?'. [1] This was followed on 31 January 2024, by the publication by the House of Commons Treasury Committee of the response of the Government and the Bank to the Committee's first report, which summarised its views on the need for a retail (as opposed to wholesale) central bank digital currency (CBDC) in the United Kingdom and its views on some of the issues that this may give rise to. [2] In doing so, it draws on evidence received through its inquiry into the cryptoasset industry.