Cryptocurrencies
Debate between Lord Harlech and Lord Bishop of St Albans
Lord Harlech (Con)
I certainly hope that I am not laying the foundations for the next financial crash. This Question is specifically about crypto assets, not shadow banking.
The Lord Bishop of St Albans
My Lords, following the collapse of FTX there is great concern at just how volatile this sector is. Many young people presume that, because it is called a currency, it is more stable than it really is. I am told that, if you go online, you will find young people talking about eye-watering amounts of money that they have made and others have lost. What are His Majesty’s Government doing to educate younger people about proper investment understanding, so that they are aware of the risks they are taking if they enter this market?
Lord Harlech (Con)
The right reverend Prelate makes an excellent point. HMT is working closely with the FCA so that the risks involved in investing in this asset class can be clearly and explicitly conveyed to anyone who is thinking of making this type of investment.
Retailers: Cash
Debate between Lord Harlech and Lord Bishop of St Albans
Lord Harlech (Con)
As my noble friend will know, technology and consumer behaviour are changing and it remains the choice of individual organisations whether to accept or decline any form of payment, including cash or card, based on a consideration of factors, such as customer preference and cost. However, the Government consider that their legislation in the Financial Services and Markets Bill will support organisations, including local businesses, to continue accepting cash by ensuring that they have reasonable access to deposit facilities. As I said, legal tender has a narrow technical meaning: it means that if you offer to fully pay off a debt to someone in legal tender, they cannot sue you for failing to repay.
The Lord Bishop of St Albans
My Lords, this is a problem that particularly affects rural areas, where there are far fewer cash-dispensing machines. Also, there are many parts of rural areas where there is no internet, so even if you want to pay by BACS or direct transfer, you just cannot do it. Will the Minister assure us that the Government will properly rural-proof this discussion so that we are able to ensure that rural areas can still function effectively?
Lord Harlech (Con)
As someone who comes from a rural community, I know only too well the trials and tribulations of getting a good connection. The Government recognise that digital inclusion needs to be promoted alongside financial inclusion. That is why we are committed to ensuring that everyone has access to digital infrastructure and the skills necessary to participate fully in society, and that very much includes rural areas. In 2021, the Government launched Project Gigabit, which committed a landmark £5 billion to support the rollout of gigabit connectivity in the hardest-to-reach areas.