- UK’s outlined consultation paper for proposed digital pound.
- Under the Bank of England’s proposal, Britons are limited to 20,000 digital pounds.
United Kingdom intends to launch a central bank digital currency (CBDC) as they issued a consultation paper outlining the proposed digital pound known as “Britcoin”. On February 7, 2023, the Bank of England (BoE) and the UK Treasury jointly released the 116-page consultation paper. That explains various aspects of the project. Also, they published a technology working paper that explores the financial and technical development factors.
According to a project paper, the Bank of England’s digital pound CBDC would set a “new form of money for households and businesses”. Additionally, it mentioned a potential cap on the amount that each citizen may hold in the CBDC’s initial phase.
The consultation paper stated;
We judge that a limit of between £10,000 and £20,000 per individual is likely to strike an appropriate balance between managing risks and supporting wide usability of the digital pound.
According to the proposal, a maximum of 20,000 pounds ($24,000) would allow everyone to utilize digital pounds for day-to-day transactions, while a limit of 10,000 pounds ($12,000) would allow about 75% of people to receive their pay in digital pounds and maintain existing balances in the same account.
