The possibility of the Central Bank of England launching a digital currency is being discussed by many financial institutions. Earlier, the central bank proposed a limit of between 10,000 and 20,000 pounds (about $12,700 to $25,400) for private users of the state steblecoin.
However, UK Finance, which represents more than 300 local companies in the financial industry, disagreed with the Bank of England’s recommendations. UK Finance said that if individuals were allowed to keep the digital British pound in an amount not exceeding 5,000 pounds (about $6,350), it would avoid panic. The organization explained that in the financial crisis, the launch of the digital pound could provoke an outflow of deposits from commercial banks.
Many Britons say the digital pound has more drawbacks than advantages. Users fear that their privacy will be violated and they may be tracked. But Tom Mutton, director of financial technology development at the Bank of England, recently assured that the digital pound will keep data private, though it will not be anonymous.
Earlier, another top Bank of England executive, Ben Broadbent, said the digital British pound would speed up payments and settlements while reducing fees.