Central Bank Digital Currency

Policy contribution

Written evidence for the House of Lords Economic Affairs Committee inquiry on Central Bank Digital Currencies (2021), with L. Somoza and T. Terracciano [link]

  • Consumers might have some benefits from lower transaction costs, faster payments, and increased competition.

  • A CBDC would change the relationship between the BoE and the banking sector, with the latter becoming even more dependent on the BoE.

  • The BoE would have a direct channel with consumers, thus being able to implement more effective and targeted monetary policies.

  • A CBDC might blur the line between monetary and fiscal policy, gradually shifting responsibilities from HM Treasury to the BoE.

  • Whether to introduce a CBDC is mainly a political decision over the role and powers of the BoE.


  • CBDCs must be coupled with greater accountability, Financial Times – Alphaville, 02/07/2021 (with L. Somoza and T. Terracciano) [link]

  • The likely impact of central bank digital currencies on quantitative easing, London School of Economics Business Review, 27/04/2021 (with L. Somoza and T. Terracciano) [link]