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Bank of England and U.K. Treasury Explore Plans for Digital Pound, Legal Framework and Data Protection Laws to be Addressed

The UK will need to create new laws or modify existing ones to accommodate a digital pound, according to two lawyers interviewed by CoinDesk. The Bank of England and the UK Treasury are seeking feedback on their plans for a digital pound, which officials say will likely be necessary in the future. If the UK decides to issue a central bank digital currency (CBDC), new legislation will be required to define the characteristics of a digital pound, and current data, privacy, and anti-money laundering rules will need to be amended to accommodate such a currency. Ownership issues and security will also need to be addressed in the legal framework for a digital pound. Additionally, Morris suggests that more consideration needs to be given to how people's concerns will be addressed, and specific amendments may be required regarding the government's use of data related to the digital pound. Only when such changes are made will people feel comfortable using it.

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