The Bank of England, in conjuction with the Treasury have formed a joint Central Bank Digital Currency (CBDC) Taskforce to coordinate the exploration of a UK CBDC. The terms of reference of the taskforce include exploration of use cases, potential and risks for a digital coin; design features for a CBDC; and monitor international CBDC developments to ensure that the UK is abreast of international developments. Pundits view the move as having been incfluenced by the COVID-19 pandemic that has increased the need for digital payments for example in welfare payments to the unemployed. The project has also been propelled by increased demand for financial transparency.
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