There are concerns that the creation of a central bank digital currency (CBDC) in the UK could cause a run on the banks during economic downturns, according to a new government report.
A report into the introduction of a CBDC by the Lords Economic Affairs Committee said that it could pose "significant risks" to the country. Lord Forsyth of Drumlean, chair of the House of Lords Economic Affairs Committee, said: "The introduction of a UK central bank digital currency would have far-reaching consequences for households, businesses, and the monetary system. We found the potential benefits of a digital pound, as set out by the Bank of England, to be overstated or achievable through less risky alternatives. "We took evidence from a variety of witnesses and none of them w...
To continue reading this article...
Join Investment Week for free
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes