Feb. 16, 2023
Authored By Michael Figueroa Via Bullion Exchanges
The Bank of England and HM Treasury have recently announced the launch of the digital pound project, a Central Bank Digital Currency (CBDC), via an official consultation paper. The central bank is responsible for maintaining the integrity and stability of the digital currency and ensuring its value remains stable.
The Digital Pound – Purpose and Design
The Bank of England claims that CBDCs will provide a secure and efficient means of payment in an increasingly digital world while preserving the central bank’s role as the issuer of the country’s currency.
The digital pound is aimed at households and businesses to use for their everyday payment needs, as a digital counterpart to traditional finance systems. The central bank alleges that the digital pound is designed to sit alongside cash, not to replace it.
Introductory Phase – Limits on Amount Held by Individuals
The introductory phase of the CBDC project may include limits on the amount held by each individual, with the consultation paper proposing a limit of between £10,000 and £20,000. This is aimed at striking a balance between managing risks and supporting the widespread use of the digital pound.
The introduction of the digital pound has been touted as an asset that will host many benefits for the UK economy, including private-sector innovation and the diversification of payments.
The Bank of England highlights the potential for the digital pound to boost competition and increase efficiency in the financial system, leading to lower costs and increased accessibility for consumers. Furthermore, the CBDC project has the potential to enhance the country’s economic resilience by reducing dependence on other countries’ currencies (Petrodollar) and financial systems.
Will CBDC Replace Pound Sterling?
The Bank of England has stated that the decision to replace the pound sterling with the digital pound has not yet been made, and will depend on the results of the CBDC project and the evolution of the payment landscape.
In addition, the consultation paper notes that the decision to introduce the digital pound will be made based on the operational and technological findings of the CBDC project, and will be done only after careful observation of the payment landscape in the UK and abroad.
Infringement on Personal Freedoms
The introduction of a CBDC, like the digital pound, has the potential to raise concerns about privacy and personal freedom. If a central authority, such as the Bank of England, has control over digital transactions and the flow of funds, it may lead to increased government surveillance and the potential for censorship.
For instance, CBDCs can track every transaction made, including personal transactions, and this information can be used for various purposes, including tax enforcement and criminal investigations. Moreover, central authorities have the ability to freeze accounts or restrict access to funds, raising questions about the right to privacy and financial freedom.
Therefore, it is crucial for the central bank and government to ensure the necessary safeguards are in place to protect individuals’ privacy and personal freedoms if CBDCs are implemented. Additionally, it is essential for a transparent and clear legal framework to be established to ensure the digital pound operates within the boundaries of privacy and freedom protections.
The introduction of CBDCs is a complex and multifaceted issue with many potential impacts, including concerns about privacy and personal freedoms. The ability of a central authority to track digital transactions and control the flow of funds may raise fears of increased government surveillance and the potential for censorship. The potential risks to personal freedoms and privacy should be carefully considered and addressed through the development of robust safeguards and legal frameworks that prioritize these values.
As CBDCs continue to be explored and developed, it is important for policymakers and stakeholders to engage in open and transparent dialogue about the potential risks of this technology, and to work towards implementing responsible and ethical policies that protect individual liberties while advancing the public good with sound money principles.
Cbcd is nothing about currency it's total control and tyranny? ask clause?
Myself, has Jim Sinclair said they will try this corrupt currency, but it will not work, and has Maneco said along with Jim, gold an silver is the only answer, Russia and China will lead the way, can't wait?