The creation of a UK central bank digital currency (CBDC) will be explored by a new UK government taskforce.
A CBDC would be a new form of digital money issued by the Bank of England, for use by both businesses and households. It would exist alongside cash and bank deposits, rather than replacing them.
The UK government and Bank of England have not yet made a decision on whether to introduce a CBDC in the UK, and this taskforce will take a proper look at the risks and practicalities.
The aim is to ensure a strategic approach, and to this end the taskforce said it will:
- Coordinate exploration of the objectives, use cases, opportunities and risks of a potential UK CBDC.
- Guide evaluation of the design features a CBDC must display to achieve its goals.
- Support a rigorous, coherent and comprehensive assessment of the overall case for a UK CBDC.
- Monitor international CBDC developments to ensure the UK remains at the forefront of global innovation.
The Taskforce will be co-chaired by the Bank of England’s, Jon Cunliffe, and HM Treasury’s Katharine Braddick.
