The economic and financial ministry of the United Kingdom’s government, known as His Majesty’s Treasury, is in the process of hiring a head of central bank digital currency (CBDC) to oversee the creation of a digital version of the pound.
It has been said that the task is “important, difficult, and cross-cutting,” and that it would “need considerable collaboration within and beyond the HM Treasury.”
The argument for a digital pound is being investigated, as stated in the LinkedIn post, by the CBDC Taskforce, which is a collaboration between the Bank of England and the Treasury of the United Kingdom.
It is possible that the position of head of CBDC will bring the government of the United Kingdom one step closer to achieving its goal of implementing a CBDC.
A CBDC, often known as a digital pound, is not too distant from this.
Numerous nations all over the globe are investigating this and attempting to comprehend the advantages of this system in comparison to the one that is now in place; it is reasonable to assume that this will eventually take place.”
Indeed, the shift toward a digital pound is consistent with the trend of central banks all over the globe to investigate the possibilities presented by CBDCs.
The European Central Bank (ECB) has been doing extensive research on the possibility of a digital version of the euro, and many countries, like Sweden and Denmark, are also investigating the possibility of developing their own national digital currencies.
CBDCs make the claim that they can provide a variety of advantages, such as expanded financial inclusion, decreased costs for companies and customers, increased security and efficiency in the payment system, and so on.
Tony Yates, who served in a senior advisory role at the Bank of England in the past, has expressed his opposition to CBDCs.
We are concerned that there may be political pressure brought to the process that ignores or significantly downplays the risks that a CBDC poses to society. Resonating the thoughts of Dewar, he questioned the motivations behind the global rollouts of CBDCs, calling them “suspect”. In general, we are concerned that there may be political pressure that is brought to the process.”
The “digital” nature of money is another component that is called into question.
The United Kingdom is becoming an increasingly cashless and digital society: According to the Bank of England, less than 15% of payments are done using physical cash, and as many as 23 million individuals, which is almost one-third of the population in the United Kingdom, did not use cash at all in the year 2021.
When Scott questions the Treasury about a digital pound, Scott says, “Don’t we already have one?”
Therefore, as soon as they have completed their exploratory phases, I would love to see a list of the advantages and new features that a CBDC will provide to the general population.”
Scott will “continue to concentrate on Bitcoin and establishing a worldwide, interoperable system that everyone can participate in” in the interim.
Dewar suggested that there is still a chance for Bitcoin and the government of the United Kingdom by saying, “The role description notes that the emergence of private sector money—such as Bitcoin—offers exciting opportunities for U.K. businesses and consumers, and we would very much agree with that at Bridge2Bitcoin.” There is still a chance for Bitcoin and the government of the United Kingdom.
Although there is currently no formal timetable in place, the Bank of England CBDC is intended to be made accessible to citizens of the United Kingdom.