UK Economic Affairs Committee unconvinced by prospect of retail CBDC

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UK Economic Affairs Committee unconvinced by prospect of retail CBDC
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The House of Lords Economic Affairs Committee published a candid report on the prospect of a UK digital pound following consultations with banking and blockchain leaders. Story by tomfarrencrypto

The House of Lords Economic Affairs Committee — an investigative governing body representing the economic interests of the United Kingdom — has released an officialTitled “Central bank digital currencies: a solution in search of a problem?,” the 52-page publication covers a litany of areas in relation to domestic CBDC endeavours, and regularly cites theOver 50 individuals, including financial experts, university professors from elite institutions, managing directors of large corporations, as...

In addition, it was stated that improper planning and careless safety precautions could have “far-reaching consequences” and “pose significant risks” dependent the asset's infrastructural design and intention of usage in the public domain.“While a CBDC may provide some advantages on speed of settlement and cheaper and faster cross-border payments, it would present significant challenges for financial stability and the protection of privacy.

The UK would derive most long-term benefit by ensuring global standards and rules on governance, privacy, security and interoperability are compatible with the national interests and values of the UK and its allies.

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