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Friday, February 3, 2023

UK bitcoin community reacts to arrival of CBDC and introduction of digital pound

Her Majesty’s Treasury, the UK’s Department of Finance and Finance, is seeking a Central Bank Digital Currency Director (CBDC) to lead the development of a digital sterling. The work has been described as “significant, complex and cross-cutting” and “will require extensive engagement in and beyond Her Majesty’s Treasury.”

According to LinkedIn post, The Treasury and the Bank of England are working closely with the CBDC Task Force to explore the issue of a digital pound. The role of the CBDC Director could move the UK government closer to its goal of establishing a CBDC.

Her Majesty’s Treasury job posting for CBDC Head. Source: LinkedIn

Danny Scott, CEO of UK-based bitcoin (BTC) startup CoinCorner, told Cointelegraph that CBDCs “might lack some real-world use and purpose that we often see.”

“For those who have been in the industry for a cycle or two, we have seen fads come and go: altcoins, blockchain, distributed ledgers, ICOs, DeFi, NFTs. Big companies jump on the latest fashion so they don’t See they are being left behind, which mostly falls into the category of R&D and exploration, which is completely understandable.”

Scott, who has been working and building in the bitcoin space for over a decade, explained that R&D projects in the crypto space can sometimes be misunderstood by the public and perhaps mistaken for useful real-world solutions. It is possible

“A CBDC (digital pound) is not far off, many countries around the world are exploring it and trying to understand its benefits over the current system, it is fair, it will happen.”

In fact, the move towards a digital pound coincides with a trend of central banks around the world exploring the potential of CBDCs. in Europe, The European Central Bank (ECB) is actively studying the future of the digital euro, and several countries, including Sweden and Denmark, are also exploring their own digital currencies.

CBDCs claim to offer several benefits, such as greater financial inclusion, lower costs for businesses and consumers, and greater security and efficiency in the payment system.

However, El Salvador banked up to 70% of its unbanked population with the introduction of bitcoin as legal tender, while countries such as Nigeria, Ghana and Kenya already have access to money from around the world on mobile phones or in bitcoin exchange accounts. can be obtained.

Uk Bitcoin Community Reacts To Arrival Of Cbdc And Introduction Of Digital Pound
Paying for coffee in El Salvador using bitcoin. Source: Cointelegraph

Furthermore, the introduction of a new digital currency carries potential risks. James Dewar, director of UK bitcoin merchant solutions partner Bridge2Bitcoin and Ledger iCards, told Cointelegraph that “The introduction of a CBDC will present different challenges and risks than bitcoin by itself”, as a CBDC “requires trust in third parties, central banks and governments, so that the money supply is not abused”.

“This risk applies as broadly as today, but it has more to do with CBDCs than the ability of the government or its agencies to monitor and censor individual spending. It is a threat to liberty and property rights within our societies. It’s a big risk.”

This begs the question: “While we may trust one government or the other, do we citizens trust this power over all future governments, regardless of color?” Former Bank of England advisor Tony Yates has spoken out against CBDCs. Agreeing with Dewar, he questioned the motives behind the global rollout of CBDCs, calling them “dubious”.

Dewar continued: “It is worthwhile for the government to properly explore this idea. In general, we are concerned that this process may be under political pressure that ignores or minimizes the risks of CBDCs to society.”

The “digital” aspect of money is also being questioned. The UK is increasingly becoming a cash-based digital society: less than 15% of payments are made with physical cashAnd up to 23 million people – nearly a third of the British population – will have no access to cash in 2021, according to the Bank of England.

Uk Bitcoin Community Reacts To Arrival Of Cbdc And Introduction Of Digital Pound
Cointelegraph reporter Joe Hall competes in Gibraltar on contactless payments, bitcoin vs GBP. Source: Cointelegraph

Scott asks the Treasury, “Don’t we already have a digital pound?”

“From the point of view of the end consumer, these days the pound is mostly digital, regardless of the mechanism used. So, once they are done with their exploratory phases, I would love to see a list of the benefits and new features that What a CBDC would bring to the masses.”

In the meantime, Scott will “continue to focus on bitcoin and making it a global interoperable system that everyone can participate in.”

Dewar shared that there may be hope for bitcoin and the UK government: “The job description states that the emergence of private sector money (such as bitcoin) presents exciting opportunities for UK businesses and consumers, and we at Bridge2Bitcoin very much agree.” The Bank of England CBDC will, by design, be available to the British, although no official timetable has been set.

the explanation: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be construed as financial advice or investment recommendation. All investments and commercial dealings involve risk and it is the responsibility of each individual to conduct appropriate research before making any investment decision.

Investing in crypto assets is not regulated. They may not be suitable for retail investors and the entire amount invested may be lost. The services or products offered are not directed at or accessible to investors in Spain.

World Nation News Desk
World Nation News Deskhttps://worldnationnews.com/
World Nation News is a digital news portal website. Which provides important and latest breaking news updates to our audience in an effective and efficient ways, like world’s top stories, entertainment, sports, technology and much more news.
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