The head of the British Ministry of Finance allowed the launch of the digital pound after 2025
The launch of a national digital currency is possible in this decade, but not earlier than 2025. This was stated by the head of the Treasury of Great Britain, Jeremy Hunt, writes Forklog.
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What is known about the launch
According to the official, e-GBP can become a new “reliable and affordable” means of payment. At the moment, the authorities are focused on the impact of CBDC on financial stability.
On February 7, the Bank of England and the country’s Ministry of Finance published a consultation document on the digital pound. Interested parties can send their comments until June 7.
According to the document, the main motivation for the launch is to ensure that the money of the Central Bank of Great Britain maintains the status of an anchor of trust and security in the country’s monetary system.
Retail e-GBP will find use among the population and companies for everyday purchases and in electronic commerce. The tool will be available to non-residents.
The document assumes a limit on balances in CBDC in the amount of 10,000 to 20,000 pounds (from $12,000 to $24,000).
Read: The head of the Bank of England does not yet see the need to create a digital pound
CBDC will exist alongside cash, supplemented by bank deposits.
The Central Bank admitted that e-GBP may affect the business models of banks.
For storage, they will develop a digital wallet accessible through smartphones and payment cards.
The design of the digital pound assumes strict standards of confidentiality and data protection — the Bank of England will not have access to personal information.
In a separate technical document, the regulator recognized that centrally managed technologies of distributed databases are best suited for the creation of a digital pound.
Read also: The digital pound may return Great Britain to the status of a world financial center
“The bank will not implement programmable functions. The regulator can provide the private sector with the necessary infrastructure for their implementation in the interests of users, which will require the consent of the latter,” the document says.
Source: Ministry of Finance
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