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UK Legislators urge caution in retail digital pound rollout

The Cointelegraph ​

Cryptocoins News / The Cointelegraph ​ 88 Views

The committee’s report recommends imposing lower initial limits on the value of retail digital pounds to alleviate the risk of potential bank runs amid market instability.

British legislators are urging a careful stance regarding implementing a retail digital pound.

Members of the Treasury Select Committee have expressed reservations regarding the possible launch of a retail digital pound, underscoring the need for thoughtful examination before execution.

In the interim, the committee’s report recommends imposing lower initial limits on the value of retail digital pounds to alleviate the risk of potential bank runs amid market instability.

Screenshot of the Treasury Committee report   Source: UK Parliament

The report addressed privacy concerns, recommending that any legislation introducing a digital pound should strictly limit the use of data by the government or the BoE.

The report proposes that in the event of legislation for the introduction of a digital pound, it should expressly limit the Government and Bank of England from utilizing data acquired through the digital pound for purposes beyond those already sanctioned for law enforcement.

Related: UK crypto hodlers get a call from the tax grinch

Committee chair Harriett Baldwin stressed the need for compelling evidence before contemplating the introduction of a retail digital pound.

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