Politics

‘Britcoin’ could cause bank run, Lords committee warns

Economic Affairs Committee says there is 'no convincing case' for a CBDC in the UK

Lawmakers are pouring cold water on the idea of a UK central bank digital currency
Lawmakers are pouring cold water on the idea of a UK central bank digital currency Photo: Vuk Valcic/Getty Images

A bank run and a potential attack from hackers are just some of the "significant risks" of introducing a central bank digital currency in the UK, according to a new government report.

Central banks are racing to investigate whether they should launch CBDCs — essentially digital banknotes — with around 90% now researching their potential in some way.

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