All articles tagged with #digital pound
The Bank of England prefers tokenized bank deposits over stablecoins to maintain financial stability, citing risks of crime and systemic disruption, and questions the need for a digital pound, contrasting with the US and Europe's approaches to digital currencies.
UK legislators are urging caution in the rollout of a retail digital pound, emphasizing the need for a careful examination of the potential benefits and drawbacks. The Treasury Select Committee recommends imposing lower initial limits on the value of retail digital pounds to mitigate the risk of bank runs during market instability. The committee also highlights the importance of protecting user privacy and limiting the use of data by the government or the Bank of England. Lawmakers stress the need for compelling evidence that the implementation of a retail digital pound would benefit the UK economy without incurring unmanageable costs or risks.