A UK minister moved to quell concerns that a digital pound issued by the Bank of England could be used to create a “surveillance state” where the government can track all citizens' spending. 

If the UK decides to move forward with a retail-focused central bank digital currency [CBDC], it will be “a platform model that wouldn't allow the government to know individual transaction data,” Andrew Griffith, Economic Secretary to the Treasury, said in evidence to a Parliamentary select committee. 

Intermediaries like banks will issue a wallet that individuals would use, he assured members of Parliament. The government wouldn't have visibility on the end user's actions, except under existing measures to protect against money laundering or fraud. 

“The government takes these concerns very seriously and will proceed on a design basis that fully accommodates those concerns about privacy,” Griffith said.