Digital Pound: Unlocking the Debate on Blockchain, Privacy, & Efficiency

• The Bank of England is debating whether the Digital Pound should operate on distributed ledger technology such as blockchain.
• The consensus appears to be that ‘Britcoin’ should offer privacy and be pseudonymous.
• It’s clear that the Bank does not want Britcoin to become a tool for financial surveillance, and it will avoid collecting personal data.

The Debate Over the Digital Pound

The Bank of England is debating the design of its Central Bank Digital Currency (CBDC), with a particular focus on whether or not it should run on distributed ledger technology (DLT). Currently, there is no consensus on this issue, with technologists hosting meetings to discuss how best to design a digital pound.

Privacy Considerations

It appears that whatever form Britcoin takes, privacy will remain at its core. The consensus among stakeholders seems to be that ‚Britcoin‘ should offer users privacy and be pseudonymous in nature. This means that it will not collect personal data or become a tool for financial surveillance.

Blockchain Technology?

Currently, there is no agreement over what blockchain technology might underpin the digital pound, or if any blockchain tech will even be involved in its creation at all. Tom Mutton, who heads the Bank of England’s CBDC project, has said that none of the technologists he has hosted meetings with have been able to come to an agreement on this issue yet.

Time Running Out

With time quickly running out before feedback closes on June 30th, it appears there is still a long way to go before an agreed-upon design can be put in place for Britcoin’s development. That being said, the Bank says they plan to trial several different versions of ledgers – including public blockchains like those used by Bitcoin – during their development process.

Open To Ideas

Ultimately, it seems clear that while the Bank of England wants Britcoin to have compatibility with distributed-ledger models in private sector use cases; they are open minded about which technologies could make up its final form when released into circulation.. They are seeking feedback from stakeholders and technology experts alike until June 30th in order to ensure they get this decision right and deliver citizens an efficient digital currency solution going forward.