Frequently asked questions

No major programme proposes this. The ECB, the Bank of England and Brazil’s central bank all state a CBDC would sit alongside cash. The EU is negotiating a separate law protecting cash alongside the digital euro.

It depends on the design and the law. The UK has committed that neither the Bank nor the Government would access users’ personal data. The EU proposal builds in privacy safeguards and offline payments with cash-like privacy. China’s e-CNY uses a centrally controlled model with real-name wallets.

The UK has stated it would not programme digital pounds or restrict spending. The EU text allows conditional payments that you choose to set up, but rules out fully programmable money.

Western proposals do not pay interest, so that a CBDC works like cash and does not drain bank deposits. China is the exception: verified e-CNY wallets earn interest from 1 January 2026.

Holding limits are likely. For the digital euro a figure around €3,000 has been discussed, with the final cap still under negotiation. Payments above the limit would draw automatically from a linked bank account.

No. It is issued and backed by a central bank, has a fixed value and is official money. Many designs do not use blockchain at all; Brazil abandoned it for Drex phase one.

No date is fixed. The digital euro could arrive from 2029 if EU legislation passes. The UK will set out its next steps in 2026, and any digital pound would first need an Act of Parliament.