Nuggets, a payments platform, is collaborating with the Bank of England to develop a privacy and identity layer for a potential digital pound. The platform aims to create a secure system to prevent tracking and correlation of transactions, as well as prevent fraud and money laundering. The Bank of England has launched a consultation on a central bank digital currency, but will not make a decision on issuing one until at least 2025. Nuggets plans to use zero-knowledge proofs on its privacy layer to enable people to verify their identity without sharing their data.