The way people use money in the United Kingdom is changing, bringing fresh opportunities and new considerations for public policy. Banknotes, issued by the Bank of England, are being used less frequently by households and businesses. New technologies are allowing for the emergence of new forms of digital money, and new ways and devices to pay with it. International developments have the potential to affect the UK domestically and as a global leader in finance.
This consultation – issued jointly by HM Treasury and the Bank of England – seeks to begin to build a foundation of public trust. It seeks feedback on the policy and technical work undertaken so far in order to inform a future decision on whether or not to progress to building and launching a digital pound and on the current proposal for its form and functions which will be taken forward in the next stage. It commits the Bank to progressing the next stage of technical and policy work needed to underpin such a decision. This paper is being issued alongside a Technology Working Paper from the Bank of England, exploring the many technology challenges involved in a digital pound.