To ask Her Majesty's Government what progress they have made with evaluating the benefits of a UK Central Bank Digital Currency.
Answered on
5 April 2022
The UK, like many countries globally, is actively exploring the potential role of central bank digital currencies (CBDC): an electronic form of central bank money that could be used by households and businesses to make payments.
The government has taken several actions to signal its commitment to leading the global conversation on the opportunities and risks of a potential CBDC.
This includes creating a new Taskforce led by HM Treasury and the Bank of England to lead exploration of a CBDC, with separate forums to engage civil society and technology experts. The government has also made a public commitment to issue a joint consultation with the Bank of England on the use cases for a UK CBDC in 2022, followed by the publication of a technical specification.
At the international level, we have used our 2021 G7 Presidency to develop and agree a set of public policy principles for CBDC, which are intended to support and inform exploration of CBDCs in the G7 and beyond.
The government and the Bank of England have not yet made a decision on whether to introduce a CBDC in the UK, and will engage widely with stakeholders on the benefits, risks and practicalities of doing so.