A committee report published by UK lawmakers has suggested regulators further explore the digital pound amidst the ongoing CBDC development in the country.
The United Kingdom is actively exploring a UK digital currency backed by its central bank. The central bank digital currency (CBDC), the digital pound, was recently in the news again. A UK House of Commons Treasury Committee report has spilled some details on the digital pound. The report also suggests regulators like the Bank of England to test the UK digital currency further for its benefits.
The report said, “There are some potential benefits to the UK economy from a digital pound. A digital pound could help support innovation in domestic payments, while guarding against some of the risks posed by new forms of private digital money by maintaining public access to a form of central bank money.”
UK lawmakers also stressed how the UK digital currency could bring about innovation to payments in the country. It mentioned all the viewpoints of the stakeholders in the CBDC development project. The report also recommended the costs around the project be transparent. Regulators in the country have shared the benefits of CBDC development earlier.
Meanwhile, the report shared a balanced landscape with both risks and advantages of a CBDC in the UK. It highlighted its request to the Bank of England and Treasury to continue with consultative work. It pointed out that the goal of CBDC development should be financial inclusion.
CBDC development has seen a proactive approach from regulators in the UK. A few sections of the crypto industry in the country also called for interoperability in the UK digital currency. On the other hand, the Bank of England also started an advisory group at the beginning of its CBDC design phase.
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