Central Bank Digital Currency

Lord Foulkes of Cumnock Excerpts

Tuesday 13th April 2021 Lords Chamber

[Baroness Penn (Con)]

My Lords, the Treasury continues work with the Bank of England on its discussion paper and next steps for that. The Bank has also been part of a coalition of central banks, including the Federal Reserve and the European Central Bank, in considering the roles of CBDCs internationally and the importance of cross-border interoperability of such CBDCs.

[Lord Foulkes of Cumnock (Lab Co-op)]

My Lords, further to the question asked by the noble Lord, Lord Vaizey, what specifically is being done to learn from experience in other countries, including the digital yuan in China, the e-krona in Sweden and in particular the sand dollar in the Bahamas, which is already in operation?

[Baroness Penn (Con)]

The noble Lord is correct that a number of countries have launched pilots of central bank digital currencies, which the UK is looking at closely. As I noted previously, the UK is also leading international work to ensure that there are standards for CBDCs and that they are interoperable across different jurisdictions.