Central Bank Digital Currencies

Treasury written question – answered at on 21 September 2023.

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Photo of John Martin McDonnell John Martin McDonnell Labour, Hayes and Harlington

To ask the Chancellor of the Exchequer, To ask the Chancellor of the Exchequer, whether he has made an assessment of the potential impact of a UK central bank digital currency on the right to privacy.

Photo of Andrew Griffith Andrew Griffith The Economic Secretary to the Treasury

Individuals’ privacy, user control and the proper use of data in line with UK data protection laws are of paramount importance to the public, HM Treasury and the Bank of England. The Government recognises the launch of a digital pound would require deep public trust in this new form of money – trust that their money would remain safe, accessible, and private.

The digital pound would be subject to rigorous standards of privacy and data protection. Neither the Government nor the Bank of England would have access to personal data, nor be able to see how consumers use their money.  Similarly, the Government and the Bank of England would not put any restrictions on how the public choose to spend digital pounds – users would have complete freedom in how they spent their money.

We consulted on the privacy features of a potential digital pound in February, and we are currently reviewing the feedback received from industry and the general public. We will publish a consultation response publication in due course.

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