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The Bank of England is undertaking further research and development on an e-book for the purchase of goods and services, which will probably be necessary in the future, Dispatcher said on Monday.
The country's central bank and finance ministry want the public to give their opinion on their plans for a digital version of the British pound, and issue a public consultation on Tuesdays.
"As long as the money's there to stick around, an e-book issued and supported by the Bank of England may be a new and trustworthy way to pay, It is accessible and easy to use," said Finance Minister Jeremy Hunt in a media statement. Jon Cunliffe, deputy governor of the Bank of England, has previously said the U.K. may need a digital pound as a more secure alternative to private cryptocurrencies.
The United Kingdom is also working to establish new regulatory frameworks which distinguish it in the region after its famous exit from the European Union. Last week, the Treasury released its plans to regulate the country's crypto sector, which – as industry members noted – has shifted slightly away from EU markets as part of the crypto assets (mica) initiative.
The consultation of the eBook is the United Kingdom's response to the European Central Bank's (ECB) two-year survey on a digital retail euro, that should end this year and be replaced by a decision on the issue of a.
As envisioned by the Bank of England, a Bank of England e-book would be made available through private sector digital wallets through smart phones or smart cards. The digital currency of the central bank is destined for on-line and off-line payments without interest paid on the assets, according to the announcement.
The Bank of England intends to carry out its own testing and design phase over the next two years, according to people who know the issue well, this will be followed by a decision to build or not an eBook. A pilot test on its digital central bank money will not be launched at least 2025.
So far, the Digital GBP does not appear to be very different from a potential Digital Euro, according to the announcement. Neither would be fully anonymous but promises to preserve some level of privacy and be subject to data protection standards. There would be a limit on individual participations and no interest paid on the participations, the statement stated. The ECB is also contemplating caps on issuance and individual holdings.
Regulated businesses will be able to use the digital infrastructure of books to 'design innovative and user-friendly services and manage all interactions with customers,' the statement said.
The decision on the issuance of an e-book 'will largely be based on the future evolution of money and payments,' the press release said. Public responses to the consultation may also have an impact on the decision.
The consultation, scheduled for release on Tuesday, will detail the plans of the central bank.
