In February 2023, HM Treasury and the Bank of England published a joint consultation on a UK CBDC. The Consultation Response, published in January 2024, sets out the steps the Government and the Bank of England would take to reinforce public trust in the design of a digital pound before any decision is made to build or issue one.
Primary legislation would be introduced before any launch of a digital pound, prior to which a further consultation exercise would be held. This legislation would include measures to guarantee users’ privacy and control over how to spend their money. The digital pound, issued by the Bank of England, would be a complement to cash and not a replacement for it. I welcome that the last Government legislated to protect access to cash and ensure that the UK cash infrastructure remains sustainable.
Financial inclusion means that everyone, regardless of their background or income, has access to useful and affordable financial products and services such as banking, payment services, credit, insurance, and the use of financial technology. I would like to reassure you that tackling financial exclusion, particularly as financial services become more digital, is a priority for me. Levels of financial inclusion in the UK are high compared to many of our international counterparts.