A committee of peers has warned that the creation of an official UK digital currency could lead to a run on the banks during economic downturns, in a new report published on Thursday.
The Lords Economic Affairs Committee said that the introduction of a central bank digital currency (CBDC) could pose "significant risks" in the UK.
Bank of England officials are currently among those at 90 central banks around the world who are exploring whether they should introduce their own digital currencies.
The committee said that none of the witnesses who came before it were able to make a "convincing case" for why the UK needs a retail central bank digital currency.
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