UK Crypto Group Urges Government To Assess Risks of CBDC

• The British Crypto and Digital Assets All Party Parliamentary Group released the paper.
• Dr. Lisa Cameron, an MP, is in charge of the APPG.

Despite the potential advantages connected with central bank digital currencies (CBDCs), the UK government should carefully assess and endeavor to minimize any risks linked with the establishment and possible adoption of the so-called digital pound.

This is especially important “in relation to financial stability, privacy, and security risks,” according to a paper released by the British Crypto and Digital Assets All Party Parliamentary Group (APPG) on Monday.

Vision for the UK to Become Global Hub

To better inform policy decisions, MPs and Lords in the UK Parliament create an independent, cross-party group known as the All-Party Parliamentary Groups (APPGs). The research cautioned the government to take precautions to prevent the adoption of any future digital pound from stifling innovation in the private sector.

According to the 52-page study titled, “Realising Government’s Vision for the UK to Become a Global Hub for Cryptocurrency & Fintech Innovation,” the Crypto and Digital Assets APPG has released the results of the investigation it conducted into the condition of the digital assets market in the UK last year.

Dr. Lisa Cameron, an MP, is in charge of the Crypto and Digital Assets All-Party Parliamentary Group, which meets to debate and investigate topics relating to digital currencies and assets.  The Crypto APPG conducted an investigation into the need for crypto industry regulation and solicited feedback from operators, regulators, experts, and the common public.

In addition, the group held a number of public testimony sessions in Parliament, where specialists shared their knowledge on the most important considerations that the government must make in order to realize its vision for the sector.