If the proposals are approved, the digital pound would be issued by the Bank of England and could be used by households and businesses for everyday payments in-store and online with a limit of between £10,000 and £20,000 spend.

A decision on whether to introduce a digital pound will be taken within the next three years, with a possible rollout by 2030. Pilot tests would start in 2025 after prototypes were developed before any decision was taken.

However, the Treasury said that ‘the introduction of a digital pound would be a major public and private sector infrastructure project. It would take several years.’

There is little evidence of a compelling argument for a digital coin in the consultation document, with a generic comment stating: ‘Our primary motivations for the digital pound are the availability of central bank money as an anchor for confidence and safety in money, and promoting innovation, choice, and efficiency in payments.’

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