The Bank of England may not launch its Central Bank Digital Currency until 2025. Insights into the launching of the much-awaited digital pounds came into the limelight after the BoE and the UK Treasury publicized their response to last year’s consultation paper on CDBC. The publication surfaced in an attempt to quench emerging questions about the launching of the CBDC.Â
In the response released on Thursday, the BoE and the UK Treasury indicated that it is unlikely that the digital pound will launch this year. The apex financial institution disclosed that it is too early to determine if there is a need for the CBDC. Nevertheless, the statement emphasized that the BoE and the Treasury will continue to conduct their research and other preparations for the CBDC.
Also, the research will focus on examining the practicality of having a digital pound for retail and wholesale purposes. Meanwhile, the Bank of England and the Treasury stated the research effort will also require much time. With that, the statement ruled out the possibility of launching the CBDC this year. Instead, it stated that it may take up to 2025 before the project will manifest.
Recall that important agencies and organizations have weighed in on the launching of the CBDC in the U.K. in recent times. Over the past months, the BoE and the Treasury have received more than 50,000 responses relating to the launching of the digital pound. As indicated the CBDC will be designed for the daily payment needs of individuals and businesses.
How the Digital Pound will Ensure Users’ Privacy
On the flip side, there are rising questions about the decentralization and safety of users’ data relating to the CBDC. There are concerns that the project may come with a huge exposure of user data to regulators like the Bank of England and the Treasury. In response, the two bodies assured that users’ data would be protected. Furthermore, the statement stressed that none of the two regulators would have access to the data of those using the CBDC.
Likewise, the Bank of England Deputy Governor for Financial Stability, Sarah Breeden underlined the need to gain users’ trust with the digital pound. The executive said it is important that the project gain the trust of the public and businesses that will adopt it. Similarly, Sarah Breeden went on to highlight how the decision of the U.K. relating to the digital pound is a big one for the future of money.