UK Aims to Revamp CBDC Regulations
U.K. House of Commons Treasury Committee lawmakers, in its recent report, have urged the government to reconsider the regulations for a potential Central Bank Digital Currency (CBDC). Proposed changes include setting a lower limit on individual holdings (up to £3,000) and the option to earn interest on these holdings.
U.K. House of Commons Treasury Committee lawmakers, in its recent
report, have urged the government to reconsider the regulations for a
potential Central Bank Digital Currency (CBDC). Proposed changes include
setting a lower limit on individual holdings (up to £3,000) and the
option to earn interest on these holdings.
Lawmakers argue that while these limits may be eased in the future, they
could initially attract users without causing a significant drain of
liquidity from traditional banks. However, some recommendations, such as
the annual return rate, diverge from the prevailing perspectives in
many European countries, which the UK government is attempting to align
with.
“Nevertheless, we support the Bank of England and Treasury undertaking
further consultative work on the design of a digital pound to enable it
to be launched if benefits increase and risks to privacy and financial
stability are mitigated,” the report concludes.
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