Source · Select Committees · Treasury Committee
Recommendation 13
13
Deferred
Publish detailed criteria for assessing the future launch decision of a digital pound.
Recommendation
To help ensure a rigorous and balanced approach is taken towards assessing the case for launching a digital pound in future, we recommend that the Government and Bank of England set out in more detail, as soon as possible, the criteria they will use to inform that final decision. (Paragraph 61) 20 The digital pound: still a solution in search of a problem?
Government Response Summary
The government agrees to a rigorous assessment approach but states the specific criteria and wider assessment framework for launching a digital pound are still being developed as part of the design phase, promising to report on progress and engage stakeholders.
Government Response
Deferred
HM Government
Deferred
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. It will be informed by a strong base of evidence, and will be forward-looking, recognising that the digital pound, if launched, would be part of a future payments landscape. The criteria that will inform the decision as to whether to proceed to build the infrastructure, along with the wider assessment framework, are being developed as part of the design phase of work. HM Treasury and the Bank remain committed to engaging with Parliament and reporting on progress throughout the design phase, including on the development of the assessment framework and the decision-making criteria. HM Treasury and the Bank also plan to engage stakeholders, including industry, academics, and civil society in the development of this analysis in order to ensure that the assessment is as robust as possible.