Source · Select Committees · Treasury Committee
Recommendation 7
7
Acknowledged
Paragraph: 48
Ensure transparent data collection, clear opt-outs, and robust regulation for digital pound wallet providers.
Recommendation
While some consumers may be content to share their personal data with payment interface providers in exchange for digital pound wallet services, there is a risk that consumers do not fully understand how their data could be used, or the implications of doing so. It is vital that it is transparent to users how their data would be collected and used. There must also be clear, usable opt-outs for those that do not wish their data to be collected and used for commercial purposes. To ensure the appropriate 18 The digital pound: still a solution in search of a problem? safeguards are in place, it is vital that wallet providers are robustly regulated from both a prudential and conduct perspective, with strong penalties for those that misuse customers’ data.
Government Response Summary
The government acknowledges concerns about private sector data use, stating all firms would comply with existing UK data protection laws, and commits to exploring privacy-enhancing designs and detailing the regulatory framework during the design phase.
Paragraph Reference:
48
Government Response
Acknowledged
HM Government
Acknowledged
HM Treasury and the Bank also understand that there are concerns about how the private sector would use personal data in a digital pound ecosystem. All firms that process personal data in a digital pound ecosystem would be subject to rigorous standards of privacy and would have to comply with UK data protection laws, such as UK General Data Protection Regulation (GDPR), the Data Protection Act 2018 and the Privacy and Electronic Communications Regulations 2003. A digital pound could be privacy-enhancing by design, in order to give users greater control over the use and value of the data held by PIPs. We will explore in the design phase how this could work and will set out in greater detail the regulatory framework that would govern the digital pound.