United Kingdom: Closed consultation on a Central Bank Digital Currency (CBDC) in the United Kingdom

On 7 June 2023, the public consultation closed on the paper on a Central Bank Digital Currency (CBDC) in the United Kingdom, the digital pound, issued by the Bank of England (BoE) and HM Treasury. In its paper, the BoE and Treasury outline the possible effects of the digital pound on financial and monetary stability and propose technical features for a potential model. In its form as a CBDC, the digital pound would be backed by the BoE, the UK's central bank. According to the BoE, a digital pound would improve interoperability between payment systems and private currency by being exchangeable with cash and bank deposits.