Digital Pound

Policy Context

The real question is what policy-level goals CBDC can achieve. Policy level goals include financial inclusion, where the population lives in the area where a commercial actor can’t operate, access to payments in the year ahead, making payment systems cheaper to run, ability to pay under severe circumstances, reducing the illicit use of money through audit trail, and competitive advantage relative to older forms of currencies.
Risk analysis is required before deciding whether the programmable money would be an appropriate alternative for UK citizens.
Policy clarity is a must-have in the domestic context, cross-currency, and cross-border interoperability, including maintaining public trust.
The questions around anonymity, monitoring of transactions, and how to balance user privacy and regulatory oversight are fundamental.
Above all, Retail CBDC users will be UK citizens, and according to the European Central Bank survey, citizens and professionals consider privacy the essential feature of a CBDC.