House of Lords report: Digital pound could lead to run on banks

Lords Economic Affairs Committee report

clock • 2 min read

There are concerns that the creation of a central bank digital currency (CBDC) in the UK could cause a run on the banks during economic downturns, according to a government report.

A report into the introduction of a CBDC by the Lords Economic Affairs Committee said that it could pose "significant risks" to the country.  Lord Forsyth of Drumlean, chair of the House of Lords Economic Affairs Committee, said: "The introduction of a UK central bank digital currency would have far-reaching consequences for households, businesses, and the monetary system. We found the potential benefits of a digital pound, as set out by the Bank of England, to be overstated or achievable through less risky alternatives. "We took evidence from a variety of witnesses and none of them w...

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