Question to the HM Treasury:

To ask the Chancellor of the Exchequer, whether his Department has had recent discussions with relevant stakeholders on the potential merits of establishing a cryptocurrency managed by the Government.

The UK, like many other countries globally, is actively exploring the potential role of a Central Bank Digital Currency (CBDC). The Government and the Bank of England have not yet made a decision on whether to introduce a CBDC in the UK. The Government is engaging widely with a diverse range of stakeholders on the benefits, risks and practicalities of doing so. The Government has committed to publishing a joint consultation from HM Treasury and the Bank of England setting out their assessment of the case for a UK CBDC.

In April 2021 the Government announced a new joint HMT and Bank of England CBDC Taskforce to coordinate the exploration of a potential UK CBDC. This Taskforce ensures a strategic approach to CBDC work underpinned by effective coordination between UK authorities – including Government departments, financial regulators, HMT and the Bank of England.

In April 2021 the Treasury also announced a new stakeholder Engagement Forum and Technology Forum. These groups are engaging with a broad range of stakeholders and technology experts on various issues relating to the exploration of a possible UK CBDC, including on risks, benefits, and technical design. The Bank received diverse applications from across industry for membership of both of these groups, and final membership is public. The minutes have been published on the Bank of England Website.