Commercial models of a potential UK retail CBDC

The Bank of England (the Bank) and HM Treasury are currently considering whether the introduction of a UK retail central bank digital currency (CBDC) would be beneficial for the UK economy and the continued integrity of pound sterling in light of increasing use of digital money.

This decision could have significant impact on the way that the UK’s financial markets operate and the ways in which consumers and businesses make payments on a day to day basis.

The Bank has previously considered how new Payment Interface Providers could function within a public/private partnership. This report considers how sustainable business models might function for these firms with the issuance of a CBDC.