CERTIFICATE EXAMINATION IN INTERNATIONAL TRADE FINANCE

 Digital Pound Tentative Roll Out in 2025

           The tentative rollout date of Digital Pound is now in public domain.

As per the latest press release by Bank of England the earliest date of issuance of Digital Pound will be in the second half of this decade.

 

Read the full 116-page ‘Consultation Paper on the Digital Pound @ https://www.bankofengland.co.uk/the-digital-pound

The link also contains the ‘Technology Working Paper on the Digital Pound’

Bank of England is looking at the case for issuing a Digital Pound.

This type of money is known as a central bank digital currency (CBDC).

Please note that the Digital Pound would not replace cash.

The Digital Pound would be a new type of money issued by the Bank of England for everyone to use for day-to-day spending.

Digital Pound can be used in-store or online to make payments.

It can also be called ‘digital sterling’ or even ‘Britcoin’.

Bank of England calls it the UK version of CBDC the Digital Pound.

The Digital Pound would be denominated in sterling and its value would be stable, just like anknotes.

£10 in Digital Pounds would always have the same value as a £10 banknote.

If Bank of England introduces it, it would not replace cash.

The Digital Pound would be like an electronic version of the banknotes issued by the Bank of England.

Folks would not be able to open an account with the Bank of England.

The way that Digital Pounds may be accessed would be through a digital wallet that would be provided by a private company.

If folks use Digital Pounds, the Bank of England and the government would not collect any personal data and wouldn't be able to see Digital Pounds are spent.

Folks will access the Digital Pound through a virtual wallet and need to share some personal data with your wallet provider. This is because folks will have a commercial relationship with the wallet provider and they would require some form of ID in order to prevent financial crime or fraud.

Folks’ privacy would still be protected by data privacy regulations and any personal data would not be shared with the Bank or the government.

Folks wouldn't earn any interest on your Digital Pounds, just like one wouldn't earn any interest on physical cash.

 

If the Bank of England introduces a Digital Pound, a limit may be set for how much people could hold the Digital Pound.

This would give the Bank of England the time to understand the impact that it might have on the financial system. 

Bank of England knows being able to use cash is important for many people.

That’s why Bank of England will continue to issue it for as long as people want to keep using it.

The Digital Pound would not be a cryptocurrency or crypto asset.

As opposed to cryptocurrencies, which are issued privately, the Digital Pound would be issued by the Bank of England and be backed by the Government.

 

Disclaimer: These are my personal views only. The bottom line is Safe ePayments. Nothing More – Nothing Less.

I am solely responsible for errors, if any. Copyrights belong to the original holders only.