The House of Commons’ Treasury Committee has launched a new inquiry into digital currencies and distributed ledger technology.
The inquiry will cover the opportunities and risks that digital currencies may bring to consumers, business and the Government. It will also examine the potential impact of distributed ledger technology on financial institutions, including the central bank and financial infrastructure. Furthermore, it will scrutinise the regulatory response to digital currencies from the Government, the FCA and the Bank of England, and how regulation could be balanced to provide adequate protection for consumers and businesses without stifling innovation.
While the inquiry is in its early stages, the Treasury Committee invites the stakeholders to provide written comments on the scope of the inquiry and on any of the following questions listed in its Terms of Reference:
- Are digital currencies ultimately capable of replacing traditional means of payment?
- To what extent could digital currencies disrupt the economy and the workings of the public sector?
- What risks and benefits could digital currencies generate for consumers, businesses and governments?
- How is distributed ledger technology being applied in the financial services sector, and how might it be applied in future?
- What work has the Government (and its associated bodies) done to understand, prepare for and, where relevant, encourage changes that may be brought about by increased adoption of digital currencies?
- How might the Government’s processes adapt should digital currencies be adopted more widely (e.g. tax implications, anti-money laundering measures)?
- Is the government striking the right balance between regulating digital currencies to provide adequate protection for consumers and businesses whilst not stifling innovation?
- Could regulation benefit digital currency start-ups by improving consumer trust?
- How are governments and regulators in other countries approaching digital currencies and what lessons can the UK learn from overseas?
View Digital currencies inquiry launched, 22 February 2018