A new Taskforce established to explore the potential of a UK Central Bank Digital Currency

27 July 2021

HM Treasury has published a document which outlines the Terms of Reference for a Central Bank Digital Currency (CBDC) Taskforce, which has been established to investigate how a UK CBDC could work.

A CBDC would be a new type of money, which would not replace cash and bank deposits, but instead would exist alongside them. This is because government recognises that millions of people still rely on cash and has committed to protect access to it for this reason.

Government and the Bank of England have not yet made an official decision as to whether a CBDC will be introduced in the UK, but the Taskforce has been set up to carry out the following functions:

•    Coordinate exploration of the objectives, use cases, opportunities, and risks of a potential UK CBDC
•    Steer evaluation of the design features a CBDC must display to achieve government goals
•    Support a rigorous, coherent, and comprehensive assessment of the overall case for a UK CBDC
•    Monitor international CBDC developments to ensure that the UK remains at the forefront of global innovation

Further information on each of the functions is available here. 

The Taskforce is co-chaired by the Deputy Governor of the Bank of England, Jon Cunliffe and HM Treasury’s Director General of Financial Services, Katharine Braddick. Prior to making a definitive decision, stakeholders will be contacted to help to understand the benefits, risks, and practicalities of implementing a CBDC.


 


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