Source · Select Committees · Treasury Committee
Recommendation 9
9
Accepted in Part
Ensure continued support for physical cash and improve digital literacy for financial inclusion.
Recommendation
The Government and Bank of England must resist the temptation to believe that a digital pound can fix problems it can’t, however, and a digital pound must not make financial exclusion worse. There is a risk that the introduction of a digital pound accelerates the demise of physical cash, causing difficulties for those currently reliant on it. It is vital that efforts continue to be made to support those reliant on physical cash. It is also vital that the Government works to improve digital literacy and inclusion in the UK. The Government and regulators must ensure that any future digital pound wallet providers grant access to at least basic digital pound services for all UK adults. (Paragraph 53) Future decision on whether to launch a digital pound
Government Response Summary
The government states a digital pound would complement cash and references its 2023 legislation giving the FCA powers to protect access to cash, with a new regulatory framework expected by summer 2024, but does not address digital literacy or universal access to digital pound services.
Government Response
Accepted in Part
HM Government
Accepted in Part
A digital pound would complement, not replace, cash. The Government and the Bank have a clear commitment to maintain access to cash for those who want to use it. In recognition that cash continues to be important for many, the Government legislated in 2023 to provide the Financial Conduct Authority (FCA) with powers to protect access to cash across the UK, including access to free services for individuals. The FCA is currently consulting on how it plans to protect access to cash and has said publicly that it expects that its new regulatory framework will come into effect by summer 2024.