The Treasury and the Bank of England have published a joint consultation which sets out the potential case for a UK central bank digital currency [CBDC], or ‘digital pound’.

The consultation highlights that the currency would:

  • Operate through a public-private collaboration,
  • Be used by households and businesses alike, for UK and international users,
  • Be issued through systems operated by the Bank of England,
  • Protect privacy but prevent anonymity, which would accompany existing AML/CTF efforts.

Whilst consultation and development will continue, firms with operations in the digital asset sector should read the proposal to gain insights into how a future UK digital currency could be shaped, and how their operations could be affected.

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