Central Bank Digital Currencies - Economic Affairs Committee to hold first evidence sessions

These evidence sessions will be streamed live on Parliament TV.

The first session will begin at 3pm. Giving evidence will be:

• Simon Gleeson, Partner, Clifford Chance
• Professor Darrell Duffie, Adams Distinguished Professor of Management and Professor of Finance, Stanford University.

The second session will begin at 4pm. Giving evidence will be:

• Natasha de Teran, Member of the Financial Services Consumer Panel
• Georges Elhedery, Group Executive and Co-CEO of Global Banking & Markets, HSBC.

Topics the committee is likely to cover in these sessions include:

• Main issues driving central banks to explore central bank digital currencies.
• The threat to financial stability of privately issued digital currencies, particularly stablecoins.
• The disintermediation risk to the commercial banking sector posed by CBDCs.
• Trade-offs central banks and governments need to consider when assessing the level of privacy and data protection in their designs for a CBDC.
• The advantages of CBDCs offer to consumers, merchants or people sending money overseas that cannot be replicated through improvements to existing payment systems.
• How CBDC could stifle innovation in finance and payments.
• How CBDC can square the circle of being 'like cash' while meeting 'know your customer', anti-money laundering and other requirements.

The committee’s inquiry is looking at the main issues confronting HM Treasury and the Bank of England as they explore the potential of a possible CBDC for the UK. It will also examine how a CBDC might affect the role of the Bank, monetary policy and the financial sector.

The committee recently issued a call for written evidence. The deadline for the submissions is 15 October 2021. Read the call for evidence and find out how to submit evidence.