Economic Affairs Committee to hold first oral evidence sessions on Central Bank Digital Currencies
On Tuesday 12 October at 3pm, the Economic Affairs Committee holds its first evidence session on Central Bank Digital Currencies (CBDCs). In the first session, the Committee will hear from Simon Gleeson, Partner, Clifford Chance and Professor Darrell Duffie, Adams Distinguished Professor of Management and Professor of Finance, Stanford University. In the second session, the Committee will hear from Natasha de Teran, Member of the Financial Services Consumer Panel and Georges Elhedery, Group Executive and Co-CEO of Global Banking & Markets, HSBC. The committee’s inquiry is looking at the main issues confronting HM Treasury and the Bank of England as they explore the potential of a possible CBDC for the UK. 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 points:
- Main issues driving central banks to explore central bank digital currencies.
- The potential threat to financial stability of privately issued digital currencies, particularly stablecoins.
- The disintermediation risk to the commercial banking sector posed by CBDCs.
- Trade-offs central banks and governments need to consider when assessing the level of privacy and data protection in their designs for a CBDC.
- The possible advantages of CBDCs offer to consumers, merchants or people sending money overseas that cannot be replicated through improvements to existing payment systems.
- Whether CBDCs could stifle innovation in finance and payments.
- How CBDCs can square the circle of being 'like cash' while meeting 'know your customer', anti-money laundering and other requirements.
These evidence sessions will be streamed live on Parliament TV