Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what plans he has to establish a crypto currency reserve bank in the UK.

The government has no plans to establish a crypto currency reserve bank.

The Treasury and the Bank of England are continuing analytical work to evaluate the possible opportunities and risks associated with a UK central bank digital currency, and of central bank digital currency initiatives being undertaken elsewhere. The Bank of England published a discussion paper on a possible UK central bank digital currency alongside the Budget in March 2020, which closed for responses on 12 June. The Treasury and Bank of England are considering next steps.

The government is also considering how it can support innovation and mitigate risks posed by cryptoassets. The Treasury recently launched a consultation looking at the broader regulatory approach to cryptoassets, including new challenges from so-called ‘stablecoins’. It closes for responses on 21 March.