MPs ask Bank of England: what is the purpose of a digital pound?
The Treasury Committee hears from the Deputy Governor for financial stability at the Bank of England, Sir Jon Cunliffe as it continues its inquiry into the crypto-asset industry.
A key area of focus will be around the purpose of a UK Central Bank Digital Currency – which the Bank and Treasury call a ‘digital pound’.
A recent consultation from the Treasury and the Bank states that a digital pound will likely be needed in the future, and would be designed for everyday payments by households and businesses, akin to a ‘digital banknote’.
MPs are likely to use the session to explore whether the UK needs a digital pound, issues around consumer privacy, financial inclusion and how best to tackle potential new forms of fraud that could arise were a digital pound introduced.
The Deputy Governor is also likely to be asked whether a digital pound might accelerate the demise of physical cash. Other points for scrutiny include the financial and monetary stability risks and implications of a digital pound’s introduction.