Last week, the International Regulatory Strategy Group (IRSG), a joint venture between TheCityUK and the City of London Corporation, responded to the Bank of England’s (BoE) consultation paper on the case for a central bank digital currency (CBDC). The industry advocacy group is generally supportive of the central bank’s exploratory work but remains unclear on the need for a retail digital pound, citing concerns about the risks to financial stability.
Earlier this year, the BoE launched a consultation paper calling for feedback on a retail digital pound. The central bank has said that a digital pound is more likely than not, but many politicians and businesses are still skeptical.
The IRSG response is a case in point. The group argues that the digital pound still lacks a clear use case and that further consideration is required on the regulatory framework underpinning its distribution model.
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