UK government establishes central bank digital currency task force

Her Majesty’s Treasury and the Bank of England have started a study on central bank digital currency that could result in the development of a national digital currency.

UK government establishes central bank digital currency task force

The exchequer announced the creation of a CBDC taskforce in collaboration with the central bank, In the document published by HM Treasury.

Jon Cunliffe, the deputy governor of the Bank of England and Katharine Braddick, director general of financial services at HM Treasury will co-chair this task force together.

As per the terms of reference document, the task force will synergize the efforts of all relevant statutory bodies in the U.K. regarding CBDC development.

The task force will explore preliminary issues associated with the design, development, implementation, and operation of the CBDC in the United Kingdom. The task force will also interface with stakeholders across academia, fintech and several other relevant industries to identify the technological obstacles involved in the development of a sovereign digital currency.

Both parties, The joint HM Treasury and BoE task force will also monitor development related to CDBC on the international scene especially as other countries are actively exploring through their own central bank digital currency projects.

As per the BoE press release published on Monday, the central bank will also run its own internal CBDC unit led by Jon Cunliffe.

Establishing the task force is another sign of the U.K. government’s focus on digital currencies and fintech in the aftermath of Brexit.