The UK Govt have issued a consultation on how to implement a Central Bank Digital Currency.
The first thing I ask myself, is what is it. An EU blog article, says, “Central Bank Digital Currency (CBDC) is a new form of money that exists only in digital form. Instead of printing money, the central bank issues widely accessible digital coins so that digital transactions and transfers become simple.” I would suggest that money in a bank account already has these properties.
The Bank of England seem to be very keen. In an article, called, “ Why? “ by John Cunliffe of the Bank, he says, “This private money i.e. bank deposits, is not a claim on the state or backed with the resources of the state. It is not covered by that familiar Bank of England promise to ‘pay the bearer’.” It is then proposed that the Bank of England create a digital currency to provide this security.
There are several major problems with this line of thought. I suspect that the vast majority of bank account holders will dispute the fact that their money is worth less because its not in cash. Most people worked for that money, and if paid in cash do not accept that the act of depositing in a bank devalues it. This suggestion that money in the bank is less safe than cash is dangerous politics and dangerous economics and needs to be opposed. Money needs to be trusted.
