Bank of England Admits Unreadiness for Britcoin's CBDC in the UK

Bank of England Admits Unreadiness for Britcoin’s CBDC in the UK

The British policymakers have portrayed their undecided stance on the digital pound – Britcoin. The policymakers dismissed the possibility of the rushed release of the digital pound, an announcement that followed the Central Bank digital currency (CBDC) consultation.

The report assesses responses from the Bank of England (BoE) and His Majesty’s Treasury consultation paper. The BoE declared the necessity of conducting a subsequent study before the UK releases the CBDC.  

UK Admits Yet to Finalize CBDC Decision

The CBDC involves a digital currency that matches virtual coins, including Dogecoin, Ethereum, and Bitcoin. A centralized authority controls the CBDC, the central bank.  

The BoE revealed that the UK has yet to reach a final decision regarding pursuing the digital pound. The statement indicated that the central bank and treasury seek to design a viable digital pound to work before deciding whether to initiate or forego its development. 

The joint statement acknowledged receiving 50,000 responses from civil society, scholars, businesses, and the public towards the consultation. The primary concerns surround the consequences of going full steam before addressing the privacy issues highlighted. 

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Unlike cash, the joint statement indicated that the digital pound would remain private, though not anonymous. 

UK Eyes Legislation to Facilitate CBDC Launch

The statement indicated that while significant businesses within the UK have stopped accepting cash, the digital pound release would not replace the money. Instead, the public will be privileged to access the anonymous payment option.

The statement assured the government’s commitment to tabling the primary legislation. The proposal would undergo voting in the Houses of Parliament before launching the digital pound. 

Subjecting the proposal to the vote would guarantee that digital pound users have privacy. It seeks to ensure that neither the UK government nor the Bank of England controls one’s spending. 

The joint statement in the UK is timely, with the Atlantic Council’s tracker indicating over 130 countries that account for 98% of the global gross domestic product (GDP) exploring CBDCS viability. 

China’s digital yuan represents the most advanced, with China rolling out the digital wallet for the nationals. Besides, several Chinese provinces have allowed individuals to receive salaries in digital yuan. 

US Presidential Candidate Trump Vows to Crack Down CBDC

The UK exhibits a cautious approach towards the digital pound. It assured commitment to the course to join 64 countries reporting advanced phases of developing, piloting, and unveiling CBDC. 

Meanwhile, the United States is witnessing a mixed bag, pitting proponents and opponents of the CBDC project. The majority of opponents assert erosion of decentralization and privacy concerns. 

Republican party presidential hopeful Donald Trump has declared his desire to prohibit the digital dollar project, further casting doubts over the US pursuing CBDC. 

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