Chancellor Rishi Sunak has announced plans to boost UK FinTech and financial services with a number of new proposals, including a central bank digital currency (CBDC) taskforce.

The new taskforce will bring together the Treasury and the Bank of England to explore a possible UK CBDC.

Two new forums will be established to engage technical experts, and key stakeholders – including financial institutions, merchants, business users, civil society groups, and consumers – through the process.

The Financial Conduct Authority (FCA) will roll out a ‘scale box,’ which is essentially a package of measures to enhance its regulatory sandbox, which has helped start-ups test new propositions and provided a one-stop shop for growth stage firms.

The FCA will also launch the second phase of its Digital Sandbox to “enable firms to test concepts that tackle sustainability and climate change-related challenges, helping to deliver a greener financial sector that supports the transition to net zero.”

As well as this, Sunak has backed the establishment of an industry-led Centre for Finance, Innovation and Technology (CFIT.)

Speaking at FinTech week, the finance minister revealed additional plans for capital markets reform to enhance open and dynamic financial centres.

He confirmed that the UK would also take forward many of the recommendations made in the recent FinTech Review, led by Ron Kalifa, and the Listing Review, led by Lord Hill.

“Our vision is for a more open, greener, and more technologically advanced financial services sector,” said Sunak. “The UK is already known for being at the forefront of innovation, but we need to go further.”

He added: “The steps I’ve outlined today, to boost growing FinTechs, push the boundaries of digital finance and make our financial markets more efficient, will propel us forward. And if we can capture the extraordinary potential of technology, we’ll cement the UK’s position as the world’s pre-eminent financial centre.”

Dan Morgan, European policy lead at Open Banking platform Plaid, said the chancellor’s announcement was a good start but that there is still more to be done when it comes to data initiatives and Open Finance.

“The steps set out by the Chancellor are a starting point,” said Morgan. “By no means do they represent adoption of the full range of recommendations within the Kalifa review, but they do illustrate that a significant deal of support will be given to ensure the UK stays ahead of the innovation curve.”

He added: “There is certainly more that can be done. Plaid would like to have seen further commitments on Open Finance and other smart data initiatives. Data is the core infrastructure of FinTech and measures to ensure consumers are in the driving seat will help UK FinTech stay ahead.”

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