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Select committee: Treasury Committee

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 January 2024

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At a glance

The government's response

This document responds to First Report - The digital pound: still a solution in search of a problem?.

This is the government's response, published 31 January 2024.

Summary written by Accountability Index from the government's response. It is not the government's own words.

HM Treasury and the Bank of England say that no decision has been taken on whether to introduce a digital pound, and that the design phase will inform a decision "later this decade".

  • On privacy, they "agree that strong privacy safeguards would be vital" and say the Government "has committed to guaranteeing users' privacy in primary legislation if a digital pound were launched".
  • On interest, they do not commit to further analysis or to keeping the option open: a digital pound "would be unremunerated at launch", and any later change would be "preceded by a review with full consultation".
  • On costs, the Bank "acknowledges" the request for a separate line item and says it "will consider the appropriate reporting mechanism going forward".
  • On holding limits, they are "minded to proceed at this stage" with a £10,000 to £20,000 limit, "at least during the introductory period", while remaining "open to revisiting the bounds of this range if new information came to light".

Read the government's response ↗ Report an error

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