Duncan ScottThe Bank of England (BoE) has announced, jointly with HM Treasury, the creation of a Central Bank Digital Currency (CBDC) Taskforce to coordinate the exploration of a potential UK CBDC. The BoE has also published the terms of reference for the Taskforce online.
A CBDC would be a new form of digital money issued by the BoE for use by households and businesses. It would exist alongside cash and bank deposits, rather than replacing them. No decision on the creation of a CBDC has yet been made and the BoE and government will engage widely with stakeholders before any such decision is taken.
The Taskforce has been set up to:
- Coordinate exploration of the objectives, use cases, opportunities and risks of a potential UK CBDC.
- Guide evaluation of the design features a CBDC must display to achieve our goals.
- Support a rigorous, coherent and comprehensive assessment of the overall case for a UK CBDC.
- Monitor international CBDC developments to ensure the UK remains at the forefront of global innovation.
The Taskforce will be co-chaired by Deputy Governor for Financial Stability at the Bank of England, Jon Cunliffe, and HM Treasury’s Director General of Financial Services, Katharine Braddick.
The BoE simultaneously announced:
- the setting up of a CBDC Engagement Forum and a CBDC Technology Forum; and
- the establishment of a new division with the BoE to be overseen by Deputy Governor for Financial Stability, Jon Cunliffe.