Launch of Digital Pound Must Not Be Considered Inevitable: Treasury Committee Warns

id5540028 Bank of England - The Japan Weeknd Magazine
While research should continue, the launch of a digital pound must not be considered inevitable, the Treasury Committee of Parliament warned on Saturday.
The committee published its first report on creating a UK Central Bank Digital Currency (CBDC), saying it’s likely to be costly and it’s still not clear whether the benefits are likely to outweigh the risks.
While there are “some potential benefits” to creating a digital pound, “their extent is unclear and there are significant risks and challenges to be worked through, particularly in relation to privacy and financial stability,” the committee said.
According to the report, potential benefits a CBDC can bring to the economy include helping innovation in domestic payments and maintaining public access to a form of central bank money. However, the extent of the benefits is unclear, and it’s not clear whether a CBDC is the only way, or the best way to achieve them….

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