Source · Select Committees · Treasury Committee
First Report - The digital pound: still a solution in search of a problem?
Treasury Committee
HC 215
Published 2 December 2023
Government response
First Special Report - The Digital Pound: A solution in search of a problem?: Government and Bank of England Response to the Committee’s First Report · published 31 Jan 2024
Recommendations & Conclusions
1
Conclusion
Acknowledged
Potential benefits of a digital pound for the UK economy remain unclear in extent and necessity.
Conclusion
There are some potential benefits to the UK economy from a digital pound. A digital pound could help support innovation in domestic payments, while guarding against some of the risks posed by new forms of private digital money by maintaining …
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Government Response Summary
The government acknowledges the committee's observation on potential benefits, reiterating that the design process itself will foster knowledge-sharing and collaboration, which are valuable regardless of the final decision to introduce a digital pound.
HM Treasury
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6
Conclusion
Acknowledged
Para 47
Concern about misuse of consumer data by digital pound wallet providers for commercial purposes.
Conclusion
We are also concerned about potential misuse of consumers’ data by the user-facing firms that would manage consumers’ digital pound wallets, particularly given that the commercial use of this data could form a key part of the business model for …
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Government Response Summary
The government acknowledges concerns about private sector data misuse and states firms would comply with existing UK data protection laws, promising to explore privacy-enhancing designs and set out the regulatory framework in detail during the design phase.
HM Treasury
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7
Recommendation
Acknowledged
Para 48
Ensure transparent data collection, clear opt-outs, and robust regulation for digital pound wallet providers.
Recommendation
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 …
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Government Response Summary
The government acknowledges concerns about private sector data use, stating all firms would comply with existing UK data protection laws, and commits to exploring privacy-enhancing designs and detailing the regulatory framework during the design phase.
HM Treasury
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