The UK government is pressuring the Bank of England and HM Treasury for greater transparency regarding the potential costs of launching a Central Bank Digital Currency (CBDC). Many UK citizens fear that a digital pound could lead to increased state surveillance of financial transactions and a loss of privacy.
A spokesperson from CryptoUK has called for a clearer action plan and timeline from the government and the Bank of England regarding the digital pound. The lack of clarity and direction is causing uncertainty and frustration for UK-based crypto and digital asset businesses, hindering their ability to invest and grow.
The Bank of England and HM Treasury have indicated that if the CBDC plan progresses, the digital sterling, colloquially known as ‘Britcoin,’ could be introduced before 2025. The UK government’s team, which oversees economic policy, has faced multiple developments since the concept of a digital pound was first proposed.
In the United States, the digital dollar has become a focal point of debate ahead of the 2024 Presidential Election, potentially turning into a campaign issue. Florida Governor Ron DeSantis, known for his strong opposition to CBDCs, will not be in the race, but former President Donald Trump has vowed to never allow a digital dollar in order to “protect Americans from government overreach.”
These developments reflect the growing global discourse on CBDCs, as nations grapple with the balance between innovation and the protection of citizens’ rights and privacy in the digital age.