Source · Select Committees · Treasury Committee
Recommendation 4
4
Accepted
Paragraph: 45
Strong privacy safeguards are vital in the fundamental design of any digital pound.
Conclusion
Strong privacy safeguards would be vital were a digital pound to be introduced. Although the Bank of England and Government state that it is not their intention to be able to access users’ data, it is conceivable that they may in future be tempted to try to make use of such a powerful source of information. It is important to guard against this risk in the fundamental design of the digital pound.
Government Response Summary
The government has committed to guaranteeing users' privacy in primary legislation if a digital pound is launched, aligning with the report's emphasis on strong privacy safeguards and confirming neither the Government nor the Bank would access personal data.
Paragraph Reference:
45
Government Response
Accepted
HM Government
Accepted
HM Treasury and the Bank agree that strong privacy safeguards would be vital if a digital pound were to be introduced. As set out in the 2023 Consultation Paper, neither the Government nor the Bank would have access to users’ personal data. Law enforcement would only have access to users’ personal information in limited circumstances and where there is a fair and lawful basis–as is the case today. Following feedback from consultation respondents, and in alignment with the report’s recommendation, the Government has committed to guaranteeing users’ privacy in primary legislation if a digital pound were launched.