Carolyn Wilkins, an external member of the Bank of England's Financial Policy Committee, has outlined the three main design principles for a Central Bank Digital Currency (CBDC): focusing on core public policy objectives, mitigating financial stability risks, and setting high technology standards.

Wilkins highlighted the importance of trust as the biggest hurdle for CBDCs to overcome. While the Bank of England is currently consulting widely on their work, no final decision has been made on whether to issue a digital pound.

Wilkins emphasized the need for CBDC policy and design to mitigate financial stability risks and set a high bar to avoid reputational implications. She also discussed the two-tiered distribution model proposed in the UK, where the Bank of England would provide the core ledger and API, while regulated private firms would provide customer-facing services.