UK Treasury select committee urges central bank and other institutions to exercise caution over rollout of retail digital pound

According to reports, British legislators are urging caution in the implementation of retail digital pounds, emphasizing the importance of finding a balance between technological progress and potential flaws. Members of the Treasury Select Committee have reservations about the possible introduction of retail digital pounds, calling for careful scrutiny before implementation. Despite recognizing the potential benefits of innovation, the committee urges the Bank of England and the Treasury to thoroughly evaluate the necessity of this step, while considering the associated costs and risks. During this period, the committee's report suggests imposing lower initial restrictions on the value of retail digital pounds to mitigate potential bank runs during market instability. This specific preventive measure aims to prevent a large amount of deposits from being transferred to digital wallets, which could increase the risk of bank failures and raise the cost of loans. (Cointelegraph)