As researchers forge ahead with looking into how a digital pound could work in the UK, lawmakers remain undecided on whether or not a central bank digital currency (CBDC) has a place in its future economic landscape.
In a recent report, the House of Commons Treasury Committee advised the Bank of England and HM Treasury to thoughtfully consider the introduction of a CBDC in the UK. It emphasized the importance of proceeding with caution and adopting a deliberate approach.
A digital pound specifically raises concerns about financial stability, committee members noted.
“One of the most commonly cited risks was that of ‘bank disintermediation’ — that is, the switching of…
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