A majority of cryptocurrencies are "highly speculative" and have "no intrinsic value," Cunliffe said, adding that although it is possible some technologies underlying crypto could help develop a digital version of the pound, the bank is considering a range of options. While the central bank has made no decision on using distributed ledger technology (DLT) which is currently used for cryptos, Cunliffe said experimentation with decentralized record-keeping is "important to ensure it is appropriately considered." The Bank of England, along with the U.K.'s finance ministry, opened a consultation on Tuesday, inviting public opinions on plans for a central bank digital currency.
LONDON (Reuters) -Britons would be limited to 20,000 digital pounds ($24,000) each if the country goes ahead with a digital currency, Bank of England Deputy Governor Jon Cunliffe said on Tuesday. "We propose a limit of between 10,000 pounds and 20,000 pounds per individual as the appropriate balance between managing risks and supporting wide usability of the digital pound," Cunliffe said in a speech. A limit of 10,000 pounds would mean that three quarters of people could receive their pay in digital pounds as well as holding pre-existing balances in the same account, while a 20,000 pound limit would allow almost everyone to use digital pounds for day-to-day transactions, Cunliffe said.
The Bank of England has begun a consultation on the introduction of its own digital pound as it seeks to gain a foothold in the unwieldy world of cryptocurrencies and stablecoins. Is the Bank of England creating its own cryptocurrency? No – the Bank is clear that it is not seeking to make its own cryptocurrency.