Alongside the progress update, the BoE has also published a design note outlining its initial thinking on the potential aims, scope and focus areas of a digital pound blueprint. It welcomes feedback on the points raised in the design note, in particular on whether the aspects highlighted are a suitable set of topics for the blueprint. Next steps will include the following:

• The BoE will start publishing design notes to present its emerging thinking on specific aspects of a digital pound, the first of which is the above note on a blueprint framework.
• The BoE will launch a Digital Pound Lab this year, which will provide a simulated environment to test the potential capabilities of a digital pound, offering critical insights into the feasibility of different use cases.
• The current Engagement Forum and Academic Advisory Group will continue, but the BoE will wind down the Technology Forum. While engagement focused on technology will continue, it will be more direct and detailed, supported by the Digital Pound Lab.
• As part of the National Payments Vision (NPV) (see our related article here), the Payments Vision Delivery Committee is being established to ensure co-ordination between the regulators and provide a mechanism to facilitate prioritisation decisions on payments initiatives. Its work will be informed and supported by the Vision Engagement Group. The design phase of the digital pound will continue alongside the Committee’s work, overseen by the existing joint HM Treasury and Bank of England Digital Pound Taskforce, with input from the Engagement Forum. The BoE points out that as the chairs of the Taskforce are also members of the Payments Vision Delivery Committee, this will ensure coherence across both governance bodies.

The BoE will continue to publish minutes of its industry forums and share relevant research and policy outputs on its digital pound webpage, ensuring that stakeholders remain informed as the project progresses.

The authority is using this Discussion Paper to "help inform the development of its rules for cryptoasset admissions and disclosures and cryptoasset market abuse."

The proposals aim to "reduce risks without stifling growth and innovation" and to "reduce consumer harms and promote confidence and trust in the UK cryptoasset market". The FCA will do the latter by:

• improving regulatory clarity so that there are clear and consistent ‘rules of the game’ for firms and consumers
• making sure consumers have the information they need before buying or selling cryptoassets  
• requiring controls and processes to bring about fair and orderly trading conditions  
• further reducing risks of money laundering and losses to fraud.

Deadline for comments is 14 March 2025. 

The data request will inform work across the PRA and the Bank of England on cryptoassets by helping them to:

• calibrate the prudential treatment of cryptoasset exposures;
• analyse the relative costs and benefits of different policy options;  and 
• provide an updated view of firms' current and intended cryptoasset-related business activities as a base from which to monitor the financial stability implications of these assets.

Firms have been asked to complete the information request at the highest-level of UK consolidation to the extent that it is relevant to their business, exposures or activities.

The deadline to submit the completed questionnaire is 24 March 2025.

In CP24/9: Financial Crime Guide updates the FCA consulted on proposed changes to the Guide relating to:

• sanctions
• proliferation financing
• transaction monitoring

It also proposed adding references to cryptoassets and the Consumer Duty, along with consequential changes such as data security and updating case studies.

Policy statement PS24/17 is relevant to:  

• all FCA financial crime supervised firms
• firms that the FCA supervises under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (MLRs), including cryptoasset businesses

The Guide will also be of interest to:  

• individuals and organisations working with firms subject to FCA financial crime and MLRs supervision
• financial services sector trade associations
• any other parties interested in FCA financial crime supervision; this could include non-governmental organisations working on financial crime prevention or academics.