The U.K. Won't Have a Digital Pound Before 2025
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The U.K. Won't Have a Digital Pound Before 2025

10 months ago

China, by comparison, is thought to be on target to launch a digital yuan renminbi before the February 2022 Winter Olympics in Beijing.

The U.K. Won't Have a Digital Pound Before 2025

Daftar Isi

It's time for supporters of a digital pound to stand up and be heard, and not just in Speakers' Corner in Hyde Park, where Londoners have been getting on a soapbox for more than 150 years.
On Tuesday, the Bank of England and HM Treasury announced that the UK government has stepped up its investigation into launching a central bank digital currency, moving from a recently completed six-month "taskforce" to a year-long "consultation."
Which means that the "development" phase of the process of actually deciding whether to create a CBDC could begin as soon as 2023, and a digital pound could conceivably launch by 2025. 
More precisely, "the earliest date for launch of a UK CBDC would be in the second half of the decade," the Bank of England and HM Treasury announced on November 9. A more accurate description would be: Maybe before 2030.
Still, the UK is ahead of the EU, whose digital euro timetable doesn't foresee a possible launch before 2026. And the U.S. has not advanced much beyond Federal Reserve Chairman Jerome Powell's September announcement that the U.S. central bank is "working proactively to evaluate whether to issue a CBDC."

China, by comparison, is thought to be on target to launch a digital yuan renminbi before the February 2022 Winter Olympics in Beijing.

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Time to Speak Up

The consultation phase marks the beginning of an opportunity for CBDC supporters in the crypto community to begin making their voices heard in earnest. John Glen, Economic Secretary to the Treasury, said:

 "This consultation will begin an open discussion on the role a UK central bank digital currency might play in the UK. I'd encourage everyone to contribute to the discussion so we can explore the opportunities this could bring, as well as understanding any risks it may pose."

In a separate statement, Glen said: 

"The government is also committed to continuing to work closely with international partners on the cross-border implications of a potential CBDC… G7 central banks and finance ministries have developed a set of public policy principles for CBDC, and a full report capturing these principles was published in October."

At the time, the G7 said any CBDC proposal must be committed "to transparency, the rule of law and sound economic governance. Any CBDC must support, and 'do no harm' to, the ability of central banks to fulfill their mandates for monetary and financial stability."
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