Do central bank digital currencies pose risks to UK national security?
Monday 25 October 2021
On Tuesday 26 October 2021, the Lords Economic Affairs Committee will be taking evidence on the economic foreign policy implications of central bank digital currencies and their effect on innovation in payments.
These evidence sessions will be streamed live on Parliament TV.
At 3pm the committee will hear from:
- Tom Keatinge, Director, Centre for Financial Crime and Security Studies, The Royal United Services Institute (RUSI).
At 4pm the committee will hear from:
- Charlotte Hogg, CEO, Visa Europe
- Richard Brown, Chief Technology Officer, R3.
Topics the committee is likely to cover in these sessions include:
- The dominance of the Chinese central bank digital currency.
- Key risks to national security posed by CDBC.
- Advantages of being the first to introduce a CDBC.
- Potential for CDBC leading to more competition between currencies.
- Whether CDBC will crowd out innovation from private financial services and fintechs.
- Possible effects a CDBC might have on established payments operators like Visa.
- Whether the Bank of England should prioritise the development of a wholesale CBDC as opposed to a retail CBDC.
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.
Last week the committee took evidence from: David Birch, adviser and commentator on digital financial services; Stephen Bonner, Executive Director, Regulatory Futures and Innovation, Information Commissioner's Office; and Andrew Cregan, Head of Finance Policy, British Retail Consortium.
You can watch this evidence session on Parliament TV.
