#23: What’s Next for the Digital Pound?

CBDC Broadcast

23 Feb

29th February 2024

With:

| Jannah Patchay (Digital Pound Foundation)

| Elise Soucie (Global Digital Finance)

In this session, Jannah Patchay (Digital Pound Foundation) and Elise Soucie (Global Digital Finance) join FNA to discuss the strategic roadmap for the "Digital Pound." Following the DPF’s pivotal submission to the Bank of England’s discussion paper, our guests analyze how the UK can maintain the "singleness of money" while introducing a new, digital form of central bank currency.

The conversation centers on the "Platform Model"—a hybrid approach where the Bank of England provides the core ledger, and the private sector drives innovation through Payment Interface Providers (PIPs). We explore the critical balance between consumer privacy and financial crime prevention, the unique advantages of the UK’s fintech ecosystem, and the transformative potential of smart contracts and programmable payments.

Key Discussion Points:

The "Fiat" Distinction: Why a Digital Pound is a risk-free claim on the central bank, whereas stablecoins remain private sector liabilities.
The Trust Mandate: Analyzing the legislative safeguards required to ensure privacy and prevent government "overreach" in spending.
Programmability vs. Programmable Money: Defining how smart contracts can automate complex transactions without compromising the fundamental nature of the currency.
Global Leadership: Comparing the UK’s "design-first" approach with international initiatives like the Digital Euro.
Seamless Interchangeability: The technical and policy requirements for ensuring the Digital Pound sits perfectly at par with physical cash and bank deposits.

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