British officials believe CBDC would be a great boost in the United Kingdom, but its Treasury Committee calls for a deeper study to ensure that the cons of the digital pound may not outweigh its benefits.
While they pledged support for a digital pound for promoting choice and sustaining access to central bank money, the MPs warned about the risks it poses.
BoE and HM Treasury have launched an academic advisory group to bring together experts to provide input on economics, policies, law, innovation and more.
The U.K. Treasury’s response to a consultation updates proposals for a regulatory regime for systemic stablecoins, which would be supervised by the Bank of England and the Financial Conduct Authority.
In the past week, the U.K. has been moving quickly with innovations related to digital currencies, blockchains, and financial innovation in general.
Payments and identity company Nuggets is working with Bank of England to develop an identity and privacy layer for its CBDC using Zero-Knowledge Proofs.
Tom Mutton, who heads the digital pound initiative at the BoE, says it will have a £10,000-£20,000 limit, will trial blockchain, and geared toward privacy.
Bank of England calls for comments on whether or not non-U.K. residents “should have access to the digital pound, on the same basis as U.K. residents.”
Both the BIS and BoE have been exploring an innovative real-time gross settlement system using DLT to power the synchronization network dubbed Project Meridian.
Acknowledging the rising popularity and adoption of tokenization, BoE's John Cunliffe says the central bank is looking into the possibility of imposing limitations on stablecoins to mitigate risks.
Bank of England is ramping up its central bank digital currency efforts and hiring developers, security architects, and more despite not officially committing to its Britcoin efforts.