Source · Select Committees · Treasury Committee
Recommendation 12
12
Accepted
Mandate a neutral and rigorous cost-benefit analysis for any digital pound launch decision.
Recommendation
Building the infrastructure needed for a digital pound would also likely be very expensive, and the eventual decision on whether to launch a digital pound will need to be subject to a rigorous cost-benefit analysis. The Bank of England and Treasury must approach this analysis from a neutral stance—the launch of a digital pound must not be viewed as an inevitable consequence of investing in further detailed design work. The policy question must remain ‘why do it’ rather than becoming one of ‘why not do it’. (Paragraph 60) The digital pound: still a solution in search of a problem? 19
Government Response Summary
The government agrees that a balanced, transparent, and rigorous approach, from a neutral stance, is required for the cost-benefit analysis of a digital pound, which will cover economic, societal, and financial implications.
Government Response
Accepted
HM Government
Accepted
HM Treasury and the Bank agree that a balanced, transparent and rigorous approach is required to assess the case for a digital pound, to explore the benefits, costs, opportunities and risks of issuance from a neutral stance. The decision to launch a digital pound will consider the fundamental factors noted in the Committee’s report. The assessment would look at the contribution of the digital pound to the objectives of the Government and the Bank. In particular, ensuring that where appropriate, central bank money remains available and useful in an ever more digital economy, continuing to support UK monetary and financial stability, and providing a public platform for private-sector innovation, promoting further competition, efficiency and choice in payments. The assessment will cover both economic and societal opportunities and risks, and the direct financial implications of developing and maintaining the digital pound.