Recommendation 9

If a decision is made to create a Central Bank Digital Currency, the Bank and HM Treasury will need to clarify what effect this would have on the framework for operational independence and the primary objectives of the Bank. They will also need to establish commensurate accountability mechanisms. The creation of a CBDC could raise wider public policy issues—such as breaches of privacy—which are highly political and could exacerbate risks of the Bank being distracted from its main objectives of controlling inflation and maintaining financial stability.