A UK central bank digital currency (CBDC) could support innovation, but the Bank of England should be wary of giving some firms too much market power, a new study says.

The report, by BoE digital currency specialist Rachel Greener, explores design choices for a digital pound that could support innovation. The UK has not yet committed to issuing a CBDC, but officials say one is “likely to be needed” in the future.

Greener considers several case studies, including Aadhaar, India’s digital ID