The committee’s report said the extend of a CBDC’s potential benefit is unclear while there are risks of financial instability and privacy and data breach.
While research should continue, the launch of a digital pound must not be considered inevitable, the Treasury Committee of Parliament warned on Saturday.
While there are “some potential benefits” to creating a digital pound, “their extent is unclear and there are significant risks and challenges to be worked through, particularly in relation to privacy and financial stability,” the committee said.
According to the report, potential benefits a CBDC can bring to the economy include helping innovation in domestic payments and maintaining public access to a form of central bank money. However, the extent of the benefits is unclear, and it’s not clear whether a CBDC is the only way, or the best way to achieve them.
The risks of creating a CBDC include financial instability, privacy and data breaches, and accelerating the demise of…
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