ABSTRACT
The Bank of England is considering the issuance of a central bank digital currency. It is not the only central bank in the world that has opened discussions in this area, as 80% of central banks in the world are engaging. Last year the Bank of England published a discussion paper which looks at several critical issues in consideration of the issuance of a native digital pound. Amongst the topics dealt with in the discussion paper are considerations pertaining to design (technology and economic), risks, and opportunities, as well as regulatory aspects. This chapter examines the understanding of the concept of central bank digital currencies, both at a global level and at the (current) national level. It examines issues of design principles and the genre of CBDC being contemplated by the Bank of England as well as the regulatory aspects that arise when considering the introduction of a new form of money into an already existing and regulated payments system.
