Digital Pound

Definition ∞ The Digital Pound is a proposed central bank digital currency (CBDC) for the United Kingdom, issued and backed by the Bank of England. It would serve as a digital form of sterling, maintaining parity with physical banknotes and existing electronic money. The digital pound aims to provide a safe, reliable, and accessible digital payment option for the nation. This initiative seeks to modernize payment systems.
Context ∞ Discussions around the digital pound are a prominent topic in UK financial news and increasingly in global digital asset reports. News items often focus on its potential impact on monetary policy, financial stability, and privacy concerns for citizens. The development of a digital pound represents a significant step in the UK’s approach to digital currency innovation and future economic infrastructure.