James Bowler, the permanent secretary of the Treasury, announced in a meeting on Wednesday that the digital pound consultation would be released on Thursday.
Bowler, holding the highest-ranking position in his civil service department, expressed caution in the government’s approach. He outlined several concerns including privacy, financial inclusion, potential limits, monetary policy, and interest rates. The consultation, aimed at addressing these issues, is set to be unveiled soon.
The digital pound consultation commenced in February and concluded in June of the previous year. Both the Bank of England and the Treasury emphasised the probable necessity of a digital pound.
Since its launch, the consultation has garnered over 50,000 responses, with privacy emerging as a primary concern among respondents.
Last month, the Treasury Select Committee, responsible for scrutinising the Treasury’s policy decisions, urged the government to reduce the proposed limit for individual holdings and to allow the digital pound to accrue interest.
Bowler emphasised the importance of embracing modern economic practices while acknowledging the challenges that must be addressed before proceeding with the digital pound initiative. The government remains in the phase of evaluating these challenges.