Central Bank Digital Currencies inquiry launched by Lords Economic Affairs Committee
17 September 2021
The Economic Affairs Committee launches its inquiry into Central Bank Digital Currencies and invites written submissions. The deadline for submissions is 15 October 2021.
- Call for evidence: Central Bank Digital Currencies
- Submit a written submission
- Inquiry: Central Bank Digital Currencies
- Economic Affairs Committee
Focus of the inquiry
HM Treasury and the Bank of England are exploring the potential of a possible CBDC for the UK. The committee will take evidence on the main issues confronting HM Treasury and the Bank as they conduct this work. It will also examine how a CBDC might affect the role of the Bank, monetary policy and the financial sector.
The committee is seeking answers to the following questions:
- What are the main issues driving central banks to explore CBDCs?
- What are the main benefits and risks of a CBDC?
- Could the proposed benefits of a CBDC be achieved through improvements to existing payment systems?
- How should the Bank of England and HM Treasury address concerns over privacy and traceability of payments when exploring CBDC design?
- What effects might a CBDC have on the financial sector?
- What effect might a CBDC have on competition and innovation in the payments and fintech sectors?
- How might a CBDC affect monetary policy?
- How might a CBDC change the Bank of England’s role and responsibilities?
- How should HM Treasury and the Bank of England engage with the public on the research and development of a CBDC?
- How might CBDCs affect the economic foreign policies or geopolitical influence of different countries and economic areas? Are there implications for the effectiveness of economic sanctions?
The Committee is looking to hear from as diverse a range of views as possible—if you think someone you know would have an interest in contributing to the inquiry, please pass this on to them.
Please read the call for evidence document above for full details on the inquiry. The deadline for submitting written evidence is 15 October 2021.
Lord Forsyth of Drumlean, Chair of the Committee, comments:
“New cryptocurrencies have generated a great deal of excitement, and concern, across the globe. The Government and Bank of England must carefully consider the implications of creating a new, state-backed, form of digital cash.”
“To inform our work we want to hear from as broad a range of people as possible. If you have a view on any aspect of Central Bank Digital Currencies, look at our call for evidence and let us know what you think.”