The Bank of England and HM Treasury jointly launched the second phase of their digital pound consultation on Wednesday, inviting views on the detailed design of a potential UK retail central bank digital currency. The 96-page consultation document focuses on three critical areas: the privacy model for transactions, including whether the Bank would have access to individual transaction data; the scope of programmability features that could be embedded in the digital pound; and the regulatory framework for private sector firms, including fintechs, that would act as intermediaries distributing the currency to consumers and businesses.

The consultation represents a significant step forward from the initial 2023 paper, which established the case for a digital pound in principle. Governor Andrew Bailey said the Bank was now "moving from the conceptual to the practical" and emphasised that no final decision on issuance had been made. The document proposes a tiered holding limit of between £10,000 and £20,000 per individual and outlines a "platform model" in which the Bank would maintain the core ledger while authorised payment interface providers handle customer-facing services. Privacy advocates have welcomed the Bank's proposal that it would not have access to personal transaction data under normal circumstances, though law enforcement access provisions remain contentious.

The UK fintech sector has emerged as a vocal advocate for the digital pound, viewing it as an opportunity to compete with incumbent banks on payment infrastructure. The Payments Association submitted a pre-consultation response signed by 31 member firms arguing that fintechs should be eligible for direct participation in the digital pound ecosystem on equal terms with banks. Revolut and Wise both confirmed they would submit detailed responses, with Revolut head of UK regulatory affairs Laura McCracken telling FinBlockDaily that the digital pound "could be the most significant opportunity for UK payments innovation in a generation." The consultation closes on 30 April 2026.