On 18 March 2022, the House of Lords (Economic Affairs Committee) published the Bank of England’s (BoE’s) and HM Treasury’s (HMT’s) response to the Lords’ Economic Affairs Committee report ‘Central bank digital currencies (CBDC): a solution in search of a problem?’

The taskforce comprising of the BoE and HM Treasury was established in 2021 to lead the UK’s exploration of a CBDC, along with forums to engage a broad range of stakeholders from across the economy and society, including consumer groups, think tanks, businesses, academics, financial institutions and technology experts. The BoE and HMT have not yet made a decision on whether a CBDC should be introduced in the UK. They are currently in a “research and exploration” phase, evaluating the case for CBDC, in order to determine whether one could be needed.