Thank you for contacting me about human rights and central bank digital currency (CBDC), also referred to as a ‘digital pound’.
In February 2023, HM Treasury and the Bank of England published a joint consultation on a UK central bank digital currency (CBDC). A final decision has not yet been made and will be informed by this consultation and future work.
Financial inclusion means that everyone, regardless of their background or income, has access to useful and affordable financial products and services such as banking, payment services, credit, insurance, and the use of financial technology. I would like to reassure you that tackling financial exclusion, particularly as financial services become more digital, is a priority for me and the Government. Levels of financial inclusion in the UK are high compared to many of our international counterparts.
I understand the Government works closely with regulators, industry and the third sector to advance financial inclusion, and recognises that fair and affordable access to relevant financial products and services is vital in people’s everyday lives, whether that is opening a bank account to receive an income, accessing credit, securing insurance, or retirement planning. Moreover, government policy on financial capability focuses on ensuring that people can access the guidance and advice they need and have the confidence and skills to successfully engage with their personal finances.
Financial inclusion also includes access to cash, a subject which I have campaigned on with ministers. I was therefore delighted to recently vote in favour of the Government’s own amendment to the Financial Services and Markets Bill confirming the new statutory right of free access to cash.
It is excellent news that this Government has legislated to protect access to cash, and ensure that the UK cash infrastructure remains sustainable. Any proposals for a digital pound would not seek to replace cash or cause further financial exclusion for groups who rely on and prefer physical financial services infrastructure.
Thank you again for taking the time to contact me.
Sally-Ann Hart MP.