Britain is dragging its feet on the digital pound.
Central bank digital currencies (CBDC's) are not cryptocurrencies, and don't need blockchain technology; they are just digital versions of the national currency. See below. The Chinese CBDC is also being designed for people who live in poor rural regions who don't have bank accounts.
It has the latter’s guaranteed sterling value, but with the additional permanent and indelible record for every individual transaction of amount (including tiny fractions unlike physical currency), timing, and the details of the paying and receiving parties.
As such it presents massive economic and security opportunities, properly legally framed, controlled and regulated, with its combination of full information, immediacy and infinitesimal cost per transaction.
Fully rolled out, it could ultimately provide the UK Government with extensive cost savings and opportunities for optimising tax collection, present regulators with far fuller real-time information, provide security services with more relevant and immediate data, substantially cheapen and streamline payment and capital requirements for financial services and other industries, and give individuals access to currently unattainable banking and payment arrangements.
Daily Express
EU and China's new digital currencies could devastate UK economy - DANIEL HODSON
Central Bank Digital Currencies Are Not Cryptocurrencies
Sophie Kiderlin - Central banks that don't issue their own digital tokens could see demand for their currencies drop — CBDCs could even be part of their policy toolkit, Bank of America says
Not having a CBDC creates the risk of losing out to countries that do have one, as well as to private actors or companies launching tokens, the Bank of America strategists believe. Much of this is linked to the surge in popularity in private, blockchain-based cryptocurrencies such as bitcoin.
Central banks that don't issue their own digital tokens could see demand for their currencies drop
If you can digitize currency influx so too the reflux and combine both processes in a single spend and tax process that isn't regressive.
ReplyDeleteWe already have a digital currency. All modern currency systems are mainly digital already.
ReplyDeleteThat's what I thought, if it isn't crypto, then nearly all money is digital anyway. But it must be a bit more than just doing away with cash.
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