Yuliya Prokopyshyn explores the prospect of a future digital pound and its uses, along with possible privacy and regulation concerns
The Bank of England (BoE) recently announced the possibility that it may issue a digital pound. The consultation paper, entitled ‘The digital pound: a new form of money for households and businesses,’ explains why the BoE considers it advantageous to explore the development and deployment of a UK digital currency.
However, the project and the characteristics of the digital assets have raised many questions and concerns. Some among those include whether the digital pound will be a cryptocurrency, what the future of cash looks like and the implications of the introduction of a digital pound limit.
Before diving into the legal considerations, let’s briefly discuss what the digital pound is, what it will be used...