- Lobbyists believe the digital pound should be compatible with crypto-assets
- Cryptocompanies are positive about creating such a currency
- CBDC consultations will end June 30
The Bank of England and Treasury published a draft CBDC earlier this year. Now it is gaining more popularity, and accordingly there are more nuances. The main issue is the compatibility of cryptocurrencies and the digital pound.
In the country as a whole, lobby groups and cryptocurrency companies view the government’s plans for a digital pound positively. Some have suggested that the currency needs to be compatible with cryptocurrencies to be relevant for the future.
The U.K. government is currently proposing a platform model in which the Bank of England (BoE) installs infrastructure for the central bank’s digital currency and allows private companies to integrate and provide wallets to provide connectivity to other services.
Varun Paul, director of CBDC at Fireblocks, said the digital pound would be even more innovative and promising if. The working paper on digital pounds states that CBDC will interact with cash and bank deposits, there is no talk of cryptocurrencies.
Paul added that if the goal of creating a digital currency is to ensure money equality and protect privacy in a world of digital assets, then it must be able to work with future assets and be as easy to use.
He expressed the view that the UK Central Bank should develop a token-based solution that will be fit for the future. The Bank for International Settlements recently proposed the idea of a single ledger that could support both tokenized assets and digital national currency (CBDC).
The Bank of England also proposed a limit of 10,000 to 20,000 digital pounds per person, at least for the initial period of CBDC. However, a decision on the digital pound is not expected until at least 2025.