BoE proposes 20,000 pound limit for digital currency

BoE proposes 20,000 pound limit for digital currency

If the Bank of England goes ahead with a digital version of the British currency, British consumers will be limited to holding a maximum of 20,000 pounds $24,000 each, BoE 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 could enter circulation in the second half of the decade, though no final decision has been made on whether or not to go ahead.

Cunliffe said in a speech to members of the UK Finance, a banking industry body, we propose a limit between 10,000 pounds and 20,000 pounds per individual as an appropriate balance between managing risks and supporting the wide usability of the digital pound.

A limit of 10,000 pounds would mean that three quarters of people could hold 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.