The Bank of England (BoE), the central bank of the U.K.,

 

The Bank of England (BoE), the central bank of the U.K., has partnered with digital wallet provider Nuggets to design a privacy layer for a potential central bank digital currency (CBDC), or digital pound.  As part of the collaboration, Nuggets will help the BoE develop a privacy feature allowing users to exchange and verify credentials through untraceable connections without disclosing their identities.  Nuggets claims that its infrastructure will enable CBDC users to control and keep their data private, preventing transactions from being tracked. The company also says its solution meets strict anti-fraud and anti-money laundering measures.  The U.K.'s financial services minister, Andrew Griffith, recently urged the government to be cautious about whether to issue a digital pound due to issues like privacy.  Both the U.K. Treasury and the BoE expect a CBDC to be launched by 2030.  Nuggets and the BoE also previously worked together in Project Rosalind aimed to develop prototypes for a potential CBDC.