June 23 (Cointime) - According to William Lovell, the Bank of England's head of strategy and architecture, the Digital Pound could offer a safer alternative to the current monetary system. Lovell believes that the Digital Pound is necessary due to the risks associated with the current payment system and banks. The Digital Pound would function as a digital version of a banknote and would be designed for everyday spending.

The Bank of England plans to oversee the underlying ledger, while banks and technology companies will handle Know Your Customer and Anti-Money Laundering checks. The Bank of England is considering implementing holding limits for the Digital Pound based on average income levels, with three limits being proposed for consultation.

The consultation on the Digital Pound began in February and will end this month, with a summary publication to follow. The Bank of England will continue to develop and communicate the Digital Pound model over the next two years before making a final decision on its rollout in collaboration with the UK Treasury.