U.K. Government and Bank of England Tread Carefully on 'Britcoin' CBDC

By: Isha Das

The U.K. government and the Bank of England are approaching the design phase of a potential central bank digital currency (CBDC), commonly dubbed as 'Britcoin', with caution, stating that officials are still exploring the feasibility and design possibilities of such a currency. However, no final decision has been made about the launch of this digital pound.

As part of the design phase, a comprehensive evaluation framework is being developed to determine whether or not to introduce the U.K.'s national digital asset. The primary objective is to maximize opportunities while mitigating risks associated with the launch of the digital currency.

Privacy concerns related to the currency have been addressed as well. The Government intends to ensure user privacy through stringent legal measures, with stringent controls on law enforcement agencies' access to users' personal information. The Bank of England and the U.K. Treasury will also not have access to users' data in the event of a future retail CBDC rollout.

Furthermore, both governmental bodies have emphasized their commitment to maintaining 'access to cash' if a CBDC is issued, stating 'a digital pound would complement, not replace, cash'.