Debate needed on impact of a digital pound, says BoE official

LONDON (Reuters) – A “national conversation” is needed on whether to press ahead with a digital version of the pound, given concerns over privacy and other “anxieties”, Bank of England deputy governor designate Sarah Breeden said on Tuesday.

Breeden, currently an executive director at the Bank, told parliament’s Treasury Committee that the impact on financial stability is also a concern regarding a digital pound.

(Reporting by Huw Jones and Muvija M, editing by Sachin Ravikumar)

London, United Kingdom – The Bank of England’s deputy governor designate, Sarah Breeden, has called for a “national conversation” to determine whether the digital version of the pound should move forward. She expressed concerns over privacy and other “anxieties” associated with a digital pound. The discussion on this topic is vital due to its potential impact on financial stability.

Breeden, who currently serves as an executive director at the Bank of England, shared her views during a hearing by parliament’s Treasury Committee. She emphasized the need to address various concerns before making a final decision on the digital version of the pound. The discussion should take into account both the benefits and risks of digital currencies.

One of the primary concerns raised by Breeden is the issue of privacy. As digital currencies allow for increased transparency and traceability, there are concerns surrounding the protection of personal data. These concerns must be addressed to ensure that the digital pound does not compromise individual privacy.

In addition to privacy, there are also anxieties related to the stability of the financial system. Breeden highlighted the importance of considering the potential impact on financial stability before proceeding with a digital pound. It is essential to assess how a digital currency could affect the overall economy and whether it introduces new risks.

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The call for a “national conversation” emphasizes the need for extensive public input and engagement on the topic. The decision to launch a digital pound should not be made solely by the authorities but should incorporate the perspectives and opinions of the wider society. This approach ensures that the concerns and interests of the public are adequately addressed.

The Bank of England has been exploring the possibility of a central bank digital currency, following in the footsteps of other countries. However, the decision to move forward with a digital pound requires careful consideration due to its potential implications for privacy and financial stability.

In conclusion, the Bank of England’s deputy governor designate, Sarah Breeden, has called for a national conversation on the digital version of the pound. Privacy concerns and anxieties related to financial stability must be addressed before making a decision. The perspectives of the public should be taken into account to ensure a well-rounded discussion on the topic.

Credit: The Star : Tech Feed