Treasury and Bank of England extend digital pound consultation

digital pound consultation Image credit: William Barton via Shutterstock

HM Treasury and the Bank of England are continuing to explore the development of the digital pound with an extension of their joint consultation.

The four-month consultation period to determine how and if the UK should approach the building of a state-backed cryptoasset was originally set to end next week.

The departments have since postponed the close of the consultation, after it was decided that it is “too early to commit to build the infrastructure for a digital pound”, however, the Bank of England and government are “convinced that further preparatory work is justified to appropriately respond to the emergence of new technologies, international developments and fresh opportunities”.

The deadline for the consultation has been pushed to the end of June, giving the departments an additional month to collect evidence on whether the UK should go ahead with the digital pound.

While Rishi Sunak has been clear about his desire to create a “global cryptoasset hub” in the UK, there have been limited developments in this goal.

The UK NFT, which was to be developed by the Royal Mint was scrapped, and progress on the digital pound has so far seen the Treasury and Bank of England determining it will “likely” exist.