British Parliament Believes Further CBDC Tests Are Needed

The House of Commons Treasury Committee of the United Kingdom has requested the Bank of England and Treasury to conduct further research and consultation to assess the potential advantages of introducing a digital version of the British pound.

A recent report from the committee emphasized the high costs associated with the initial preparations and trials for a central bank digital currency (CBDC) and recommended increased transparency in reporting these expenses in future annual reports.

The committee also noted the numerous advantages that have been identified through the ongoing testing of a digital pound, such as improved issuance processes, distribution methods, and privacy features.

However, it raised concerns about the large financial investment that would be required for an official launch and stressed the need for a thorough cost-benefit analysis to determine if the benefits would ultimately outweigh the risks.