The UK Treasury Committee is expressing concerns about the potential introduction of a retail Central Bank Digital Currency (CBDC), or digital pound, due to the risks it may pose to the economy. Lawmakers are worried that allowing people to quickly switch large amounts of bank deposits into digital pounds during market turmoil could lead to bank runs and increase the risk of bank failures. They also raised concerns about privacy and data issues, urging that any legislation regarding a digital pound should not allow the government or Bank of England to use the data for purposes beyond law enforcement. The lawmakers recommended that the project proceed only if the benefits can outweigh the risks and suggested a lower holding limit for digital pounds to reduce the risk of large-scale outflows from bank deposits. The launch of the digital pound is not expected until the latter half of the decade, as the authorities are currently in the design phase and are urged to proceed cautiously.

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Information	Details
Geography	Europe
Countries
Sentiment	neutral
Relevance Score	1
People	Harriett Baldwin
Companies	H.M. Treasury, Bank of England, None, U.K. Treasury Committee
Currencies	None
Securities	None