The United Kingdom Tax Reform Council has begun a campaign in opposition to the idea of the Bank of England to develop a digital currency that is controlled by the central bank (CBDC). The charitable organization issues a warning that such a step might pose a significant threat to the privacy of individuals and result in modifications to the taxation system that are too invasive.
On the advisory board of the recently established Tax Reform Council is monetary economist John Chown, who was also instrumental in the establishment of the Institute for Fiscal Studies. The Tax Reform Council is of the opinion that the implementation of a CBDC would result in an increase in the level of government monitoring, a larger level of intrusion by tax officials, and an increased danger of cyberattacks on the monetary system of the country.
The think tank is concerned about the same things as the Bitcoin (BTC) community in the United Kingdom, which has been quite outspoken about its opposition to CBDCs.
The co-founder of the Bitcoin Collective in the United Kingdom, Jordan Walker, said that “the deployment of CBDCs in the United Kingdom is risky on a number of fronts.” If we did this, the government and the central bank would have a greater degree of influence over our monetary system.
“This binds the monetary system even closer to the political system, which is a system that has produced big issues in the past and that continues to bring considerable problems in the present. Instead, we need to make it our goal to keep money and politics completely distinct.
“the choice of the Bank of England to pursue a British CBDC poses a number of very significant issues,” as noted by the advisory board economists, who include Patrick Minford, Julian Jessop, and Chown. The goal of the organization is to educate people about the potential for “greater government monitoring” offered by CBDCs.
CBDCs make the claim that they can improve financial inclusion, lower costs for both firms and consumers, and boost consumer and employee safety. Bitcoin, on the other hand, already provides these benefits and many more: By passing the Bitcoin legislation, El Salvador was able to bank large portions of its population, and Bitcoin also gives a path to freedom for those who are now living in oppressive regimes.
Both the Treasury and the Bank of England in the United Kingdom have been conducting recruitment for CBDC posts. In spite of opposition from the wider crypto community, the Bank of England has emphasized the “need” to develop a digital counterpart of the British pound.
According to the Tax Reform Council, every personal transaction carried out with the use of a CBDC would be logged on the private blockchain ledger maintained by the Bank of England. This would provide the tax collector with unparalleled access to the individuals’ financial histories. According to the press release, this is something that has already begun to occur in China with the renminbi CBDC.
Walker raised the alarm, stating, “I believe we are closer to the rollout than many realize, and until we have more education around this issue, we’ll see many individuals in this nation become dragged into this computerized monetary tyranny without ever realizing it.”