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
2
Conclusion
Rejected
Para 34
Digital pound risks UK financial stability; lower initial individual holding limits needed.
Conclusion
It is vital that a digital pound does not increase risks to UK financial stability and, were a digital pound to be launched, it could take some time to fully understand the impact on financial stability and the wider economy …
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Government Response Summary
The government rejects the suggestion for a lower initial holding limit, stating it is minded to proceed with a £10,000-£20,000 limit for the digital pound, while remaining open to revisiting this if new information arises.
HM Treasury
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3
Recommendation
Rejected
Para 38
Undertake further analysis on monetary policy impact of paying interest on digital pound.
Recommendation
We recommend that the Bank of England and Treasury undertake further analysis on the monetary policy impact of paying interest on the digital pound, and in the meantime ensure that their design work does not preclude the possibility of paying …
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Government Response Summary
The government rejects paying interest on the digital pound at launch, stating it is intended as a payment means and would be unremunerated like cash, though any future decision to revisit this would involve a full consultation.
HM Treasury
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