Select committee: Treasury Committee
Recommendation 7
First Report - The digital pound: still a solution in search of a problem?
Published 2 Dec 2023
Paragraph 48
Addressed to HM Treasury
Treasury Committee The crypto-asset industry All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Recommendation (the committee's words)
While some consumers may be content to share their personal data with payment interface providers in exchange for digital pound wallet services, there is a risk that consumers do not fully understand how their data could be used, or the implications of doing so. It is vital that it is transparent to users how their data would be collected and used. There must also be clear, usable opt-outs for those that do not wish their data to be collected and used for commercial purposes. To ensure the appropriate 18 The digital pound: still a solution in search of a problem? safeguards are in place, it is vital that wallet providers are robustly regulated from both a prudential and conduct perspective, with strong penalties for those that misuse customers’ data.
From: Treasury Committee, First Report - The digital pound: still a solution in search of a problem? (HC 215), paragraph 48, 2 December 2023
Government response
The government responded to the whole report on 31 January 2024 (deadline 1 February 2024).
Summary written by Accountability Index from the government's response. It is not the government's own words.HM Treasury and the Bank of England say that no decision has been taken on whether to introduce a digital pound, and that the design phase will inform a decision "later this decade".
- On privacy, they "agree that strong privacy safeguards would be vital" and say the Government "has committed to guaranteeing users' privacy in primary legislation if a digital pound were launched".
- On interest, they do not commit to further analysis or to keeping the option open: a digital pound "would be unremunerated at launch", and any later change would be "preceded by a review with full consultation".
- On costs, the Bank "acknowledges" the request for a separate line item and says it "will consider the appropriate reporting mechanism going forward".
- On holding limits, they are "minded to proceed at this stage" with a £10,000 to £20,000 limit, "at least during the introductory period", while remaining "open to revisiting the bounds of this range if new information came to light".