Central Bank Digital Currency

Baroness Gardner of Parkes Excerpts

Tuesday 13th April 2021 Lords Chamber

[Baroness Penn (Con)]

I agree with my noble friend on the importance of privacy considerations in these matters. We know that more than 80% of central banks globally are doing some form of work on CBDCs and different nations will take different approaches. In the UK, Her Majesty’s Treasury and the Bank of England are looking at all the public policy considerations of a CBDC very carefully, including privacy.

[Baroness Gardner of Parkes (Con) [V]]

My Lords, can the Minister comment on the extent to which the increased use of digital payments during the pandemic is expected to accelerate the development of central bank digital currency in the UK?

[Baroness Penn (Con)]

The increase in digital payments during the pandemic has happened without the introduction of a central bank digital currency. However, the Government continue to look at the potential benefits of introducing a digital currency which may improve the resilience and innovation of payment systems within the UK.