The Lords’ Economic Affairs Committee has begun examining central bank digital currencies (CBDCs). The information is on the site of the Parliament of the United Kingdom.
In April, the Bank of England and Her Majesty’s Treasury created a joint working group to study CBDCs. In the same period the regulator posted seven vacancies in the group researching digital currencies.
“The committee will gather evidence on the key issues faced by the Treasury and the Bank in the course of its work. It will also consider how CBDC could affect the regulator’s role, monetary policy and the financial sector,” the committee said.
Interested parties were invited to respond to ten questions, including providing views on the risks and benefits of CBDCs, as well as issues of tracking and privacy.
The deadline for responses is 15 October 2021.
Earlier, the Bank of England’s Chief Economist Andrew Haldane suggested that the emergence of national digital currencies would reduce the risks of financial crises.
According to a poll, only 24% of Britons supported the rollout of the digital pound. Citizens’ top concerns include the threat of hacking and privacy violations.
Benoît Cœuré, head of the BIS, urged central banks to accelerate CBDC development.
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