The Digital Pound is a project being undertaken jointly by the Bank of England and HM Treasury to develop a central bank digital currency (CBDC) for the UK. CBDCs are digital currency, like Bitcoin, but issued by a central bank and therefore are a form of official national currency. The project is long term – the Bank of England began researching the possibility of a Digital Pound back in 2020 and it would likely take until the end of the decade for it to actually be launched, if the Bank and the Treasury even decide to go ahead.
If the Digital Pound is launched, it will be the biggest monetary innovation in the UK since the introduction of card payments.
This report from Dods Political Intelligence details the work that has been done on the Digital Pound so far, the current state of play, and what we might expect next. With the change in Government, it is an important time for the Bank of England and its major projects, including the Digital Pound.
The Digital Pound Foundation, a forum for promoting the creation of the Digital Pound, said that the Labour Party have shown “more of a commitment than any other political party” to developing the Digital Pound.
Our report on the Digital Pound provides a comprehensive overview, commentary and analysis of the current UK monetary system, including the distinctions and state of play of fiat money, central bank reserves, and commercial bank money. It offers insights into global Central Bank Digital Currency (CBDC) trends and pilots, details the timeline and progress of the UK’s Digital Pound initiative, and outlines future steps including Labour policy and the Bank of England’s stance.