The Treasury and the Bank of England are consulting on a potential digital pound, or central bank digital currency (CBDC). The digital pound would be issued by the Bank of England and could be used by households and businesses for everyday payments in-store and online. If introduced, a digital pound would be interchangeable with cash and bank deposits, complementing cash
Last week in Parliament, Richard contributed to the debate on the consultation that has been initiated by the Bank of England and HM Treasury on the introduction a CBDC, also known as a digital pound.
Speaking after the debate, Richard Fuller MP said:
For people and businesses, the experience of using a digital pound would be very similar to using other forms of digital money. For example, it would be accessible online via smartphones and computers, as well as through cards that can be used at point-of-sale terminals.
The difference between a digital pound and other forms of digital money is that the Bank of England would be the issuer. Like cash, a digital pound would therefore represent a claim on the Bank of England. By contrast, money in a bank account represents a claim on a private company, the bank you bank with.
Whilst I welcome this consultation I pointed out that there were risks attached, not least in potential threats to individual financial freedoms. I asked the Minister whether, at the end of the consultation he would look to draft a financial liberty charter in order to safeguard these rights.
Richard's question to the Minister and the response can be watched here.
No decision has been taken at this stage to introduce a digital currency. The consultation can be accessed here.
