The Bank of England and the UK Treasury plan to hold a consultation on the possible introduction of a central bank digital currency from 2022.

9, the Bank of England stated that the UK Treasury Department’s consultation on the digital pound would explore its design features, benefits and implications for users and businesses, as well as other related matters. The outcome of the 2022 consultation will determine whether the UK authorities intend to continue using central bank digital currencies or CBDCs.

“If the results of this ‘development’ phase conclude that the case for a CBDC is strong, technologically and operationally strong, the earliest date for CBDC adoption in the UK would be in the second half of the decade,” Central Bank.

The Bank of England added that “no decision has yet been made” as to whether the UK will adopt CBDCs in the future. Any digital pound project, however, would aim to coexist with cash and bank deposits rather than supplanting them.

In April the Bank of England and the Treasury Department formed a task force to examine the implementation of the CBDC, including issues related to its design, implementation and operation. Chancellor of the Exchequer Rishi Sunak said in July that local officials will be advising groundbreaking reforms “to support the safe adoption of cryptocurrencies and stablecoins” and will investigate the case of a domestic CBDC.

Related: Creation of the Digital Pound Foundation to promote CBDC development in the UK

While many of the countries with the largest economies in the world are not yet implementing CBDCs, some have already started pilot programs. China’s adoption of the digital yuan continues to be tested in many regions, with the country’s central bank reporting that more than 140 million individual accounts are holding the digital currency as of October.

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