Select committee: Economic Affairs Committee

Government response to Central bank digital currencies: a solution in search of a problem? (1 February 2022)

Published 18 March 2022

At a glance

The government's response

This is the government's response, published 18 March 2022.

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

The government says "No decision has been taken" on issuing a UK CBDC, and that exploratory work will continue, informed by a consultation in 2022.

HM Treasury and the Bank of England "will publish a consultation in 2022" setting out their assessment of the case for a UK CBDC, including the merits of further work on an operational and technology model.
The government "agrees" that CBDCs pose a broad range of opportunities and risks requiring careful evaluation, and expects to "fully engage Parliament", including through any possible legislation.
On cash, the government says a CBDC would exist alongside cash rather than replacing it, and states it "is committed to legislating to protect access to cash".
The government "agrees" that any CBDC would need to be adaptable and able to be updated rapidly in response to technological change and emerging security threats.

This is a government response document, so it has no recommendations of its own.