On Tuesday 9 November, the UK HM Treasury and the Bank of England announced next steps on the exploration of a UK Central Bank Digital Currency (CBDC). CBDC would be a new form of digital money issued by the Bank of England which would exist alongside cash and bank deposits.

In 2022, HMT and the Bank will launch a consultation which will set out their assessment of the case for a UK CBDC, including the merits of further work to develop an operational and technology model for a UK CBDC. It will evaluate the main issues at hand, consider the high level design features, possible benefits and implications for users and businesses, and considerations for further work. This consultation will form part of a ‘research and exploration’ phase and help to inform policy development over the next few years.