The Bank of England issued a report in March, on Central Bank Digital Currency (CBDC) which would “allow households and businesses to directly make electronic payments using money issued by the Bank of England”....Efficiency.
Progressive Pulse
Saturday, June 6, 2020
Attitude changing by issuing a Central Bank Digital Currency — Peter May
Progressive Pulse
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3 comments:
Even so, this has the great advantage that if any bank should go bust, it could potentially be allowed to do so – as the real banking would be going on independently behind the scenes and the payment system would be entirely unaffected Peter May
This is game changer since a great deal of the power of private banks is that the SINGLE* payment system we currently have MUST work through them or not at all - thereby holding the economy hostage.
So it's a step to 100% voluntary private bank depositors - the way things should be.
Note the MMT crowd won't be happy with this ...
*except for mere physical fiat, coins and paper CB Notes.
PS: I'm not happy that the front end is through private depository institutions but that can be fixed later as local Post Offices assume that role.
Andrew, I agree with your first three paras. As for MMTers I don't see why most of them will be bothered though I agree the direction the Bank of England is going will not to be Warren Mosler's liking.
Incidentally, rumour has it that Ben Dyson, who founded Positive Money, an organisation which advocates the sort of bank set up that you and I want, moved to the Bank of England so as to subvert it from within. Perhaps he's having some success.....:-)
Another incidental point is that I submitted a paper yesterday to the Kiel Economics E-Journal arguing for a removal of all private bank privileges, and for making accounts at the central bank available to all, for those who want total safety. Obviouisly if it's published, I'll be broadcasting the fact from the rooftops.
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