Britons face 20,000 digital pound cap under Bank of England plan
LONDON, Feb 7 (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.
Britain’s government said on Monday that it and the BoE were pressing on with work on a possible digital pound that was likely to enter circulation in the second half of this decade and be held in a “wallet” provided by banks, although no final decision has been made.
“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.
Money above the cap would be "swept" into a customer's commercial bank account given that a digital pound would not be a means for storing wealth, he told members of UK Finance, a banking industry body.
"At the other end, you could say I need a little wallet full of internet cash to buy things on Amazon," Cunliffe added.
In other words, banks are going to give you an allowance, like you're a child.
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