Bank of England’s digital pound won’t replace cash

The digital pound will not replace cash under the proposed Central Bank Digital Currency (CBDC) system, per the Times.

Public opinion on CBDCs is generally negative, including concerns about financial privacy and infringement of personal freedoms.

Nonetheless, the Bank of England (BoE) said a digital pound is “likely to be needed” in an increasingly digital world – including improving people’s payment options.

Digital pound Q&A

On April 8, the Times published an article on the BoE accelerating its plans to develop a U.K. CBDC.

It mentioned the ongoing recruitment drive to onboard staff to the project, particularly those experienced in cybersecurity. Ian Taylor, Board Advisor at CryptoUK, commented that the numbers sought showed how serious the BoE is on the matter.

“As a ‘starter for ten’ at the beginning of this project, a team of 30 seems like quite a significant resource to focus on the digital pound.”

In February, the Treasury opened a public consultation on the digital pound, inviting individuals and businesses to share their opinions. The consultation is set to end on June 7.

The Times article covered several Q&A points, including the proposed CBDC not replacing cash and being more stable than decentralized cryptocurrencies. But it could not provide a firm answer on the difference between regular, existing card payments and the digital pound.

“At the moment, a lot is up in the air — but the likely difference between a normal pound on your bank card and a digital pound would be the ability to electronically transfer cash from wallet to wallet — without relying on a bank account or a big provider such as Visa or Worldpay — in a peer-to-peer transaction.”

It was also noted that people would be limited in the number of digital pounds they can hold. At least “until the impact on the financial sector is understood.”

Fight back against CBDCs

Speaking to CryptoSlate recently, decentralization advocate Chris Blec said CBDCs are sold on efficiency and convenience. However, they “eliminate our financial privacy and micro-manage our lives.”

He called on people to resist by buying decentralized cryptocurrencies like Bitcoin and supporting anti-CBDC politicians.

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