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Bank of England official: The view that the digital pound CBDC will not be programmable to avoid government control

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According to reports, last week Katie Fortune, Senior Manager of the Central Bank\’s Digital Currency (CBDC) department at the Bank of England (BofE), suggested that the digital pou

Bank of England official: The view that the digital pound CBDC will not be programmable to avoid government control

According to reports, last week Katie Fortune, Senior Manager of the Central Bank’s Digital Currency (CBDC) department at the Bank of England (BofE), suggested that the digital pound would not include government enabled programmable features to avoid misunderstandings about excessive government expansion. Katie Fortune stated that, like the digital euro, the core of the digital pound is not programmable, but programmability can still be implemented by the private sector. A two-layer model with a private sector layer in the middle can be built on top of BofE’s infrastructure. In this way, it will be private companies that deal with end users. This will enable UK banks to support innovation while maintaining independence.

Bank of England official: The view that the digital pound CBDC will not be programmable to avoid government control

I. Introduction
– Explanation of the article topic
– Background information on the digital pound and the CBDC department at the Bank of England
II. Katie Fortune’s Statement on the Digital Pound
– Explanation of Katie Fortune’s role as Senior Manager of the CBDC department
– Discussion of Katie Fortune’s statement on the digital pound not having government enabled programmable features
– Reasons for avoiding excessive government expansion
– Comparison with the digital euro and its programmability
III. Alternative Model for the Digital Pound
– Explanation of the two-layer model with a private sector layer
– Discussion of the role of private companies in the handling of end users
– Advantages of the alternative model
– Impact on UK banks and their ability to support innovation
IV. Potential Challenges and Criticisms
– Potential challenges that may arise in the implementation of the two-layer model
– Criticisms that may be raised regarding the government’s level of control
V. Conclusion
– Summary of key points
– Final thoughts on the digital pound’s implementation and its impact
VI. FAQs
1. What is the digital pound?
2. Why is programmability avoided in the digital pound?
3. How will the two-layer model work?
# **According to Reports the Digital Pound Won’t be Government-Enabled Programmable Features for Avoiding Misunderstandings about Excessive Government Expansion**
The Bank of England’s Central Bank’s Digital Currency (CBDC) department’s senior manager, Katie Fortune, has come out to suggest that the digital pound would not include government-enabled programmable features. Her primary reason was to avoid misunderstandings about excessive government expansion.
Katie Fortune stated that the digital euro’s core is not programmable, and the same applies to the digital pound. However, private companies could still implement programmability using a two-layer model. The Bank of England’s infrastructure would be the underlying layer, while private companies would form the middle layer. Private companies would then deal with end-users using programmable features. This would allow UK banks to support innovation while maintaining independence.

Katie Fortune’s Statement on the Digital Pound

Katie Fortune is a senior manager within the CBDC department responsible for developing the digital pound. Her statement may be taken as an official view of the Bank of England on this matter. With that said, Katie Fortune explains that the digital pound would not have government-enabled programmable features. This decision was reached due to the need to avoid misunderstandings about excessive government expansion that may raise concerns among the public.
Furthermore, the digital Euro and the digital pound share similarities as their core systems are not programmable. The digital Euro is centralized, and its programmability is on a permissioned basis. Katie suggests that an alternative model for programmability could be the solution for the digital pound.

Alternative Model for the Digital Pound

Katie Fortune proposed a two-layer model for programmability with a private sector layer. In this model, the Bank of England’s infrastructure would provide the underlying layer, while a private sector layer would sit in the middle. Private companies would integrate programmability features and deal with end-users. This model will allow UK banks to support innovation while maintaining independence effectively.
The two-layer model has several advantages. It allows the private sector to apply its innovative expertise without giving up control to the government. In turn, this increased level of control would strengthen the Bank of England’s credibility as the central bank. Additionally, the central bank would have control over the core of the digital pound, helping to eliminate any excesses in government expansion.

Potential Challenges and Criticisms

The two-layer model is not without challenges. Potential issues may arise when the private sector deals with end-users, and it is entirely possible that some of them may fail to meet specific quality standards or security guidelines. Furthermore, critics may argue that the government maintains overall control of the digital pound’s infrastructure, making the private sector’s operational control less significant.

Conclusion

In conclusion, the Bank of England’s senior manager, Katie Fortune, has come out to suggest that the digital pound would not include government-enabled programmable features. Instead, she proposes an alternative two-layer model with a private sector layer in the middle. This will enable UK banks to support innovation while maintaining independence. Although the model may have its challenges, the level of control that it offers to both the government and the private sector could prove to be beneficial in the long run.

FAQs

1. What is the digital pound?
The digital pound is a digital currency being developed by the Bank of England Central Bank’s Digital Currency department.

2. Why is programmability avoided in the digital pound?
Programmability is avoided in the digital pound to prevent misunderstandings about excessive government expansion.
3. How will the two-layer model work?
The two-layer model works by utilizing a private sector layer in the middle of the Bank of England’s infrastructure. Private companies would integrate programmability features and deal with end-users.

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