Central Bank Digital Currency

Lord Moynihan Excerpts

Tuesday 13th April 2021 Lords Chamber

[Baroness Penn (Con)]

My Lords, the Government have a leading cybersecurity programme. In addition to that, the Bank of England has committed to publishing a further paper this year on the potential financial stability impacts of digital currencies because, as the noble Lord notes, as well as the opportunities presented by these currencies there are risks that they could pose.

[Lord Moynihan (Con)]

My Lords, CBDCs are here to stay and more than 60 central banks are studying how they could affect the role of traditional forms of money through proofs of concept. Some 36 central banks are exploring both retail and wholesale CBDCs. Will the Minister prioritise government work into how the retail use case can improve payment safety, increase domestic payment efficiency and ensure financial stability and inclusion in the metaverse?

[Baroness Penn (Con)]

I reassure my noble friend that that is exactly what the Government’s work with the Bank of England is seeking to do. It is focusing on the retail and consumer side of a central bank digital currency rather than wholesale.