British legislators are urging a careful stance regarding implementing a retail digital pound. They stress the importance of finding an equilibrium between technological advancements and potential drawbacks.
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. Despite recognizing potential advantages in terms of innovation, the committee has urged the Bank of England (BoE) and Treasury to thoroughly assess the necessity of such a step, considering both associated costs and risks.
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. This specific precautionary measure aims to deter significant transfers of deposits into digital wallets, which could heighten the risk of bank failures and elevate loan costs.
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 committee stressed the importance of protecting user privacy and ensuring that the digitization of currency does not enable unwarranted surveillance.
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 f
Go to Source to See Full Article
Author: Amaka Nwaokocha
Tip BTC Newswire with Cryptocurrency
Donate Bitcoin to BTC Newswire
Donate Bitcoin Cash to BTC Newswire
Donate Ethereum to BTC Newswire
Donate Litecoin to BTC Newswire
Donate Monero to BTC Newswire
Donate ZCash to BTC Newswire
