industryopinion Digital pound
strengthens case for Bitcoin and crypto
The UK’s plans for a digital pound to be launched later this decade underscore that digital currencies are the future of finance and strengthen the case for cryptocurrencies such as Bitcoin. This analysis from Nigel Green, CEO and founder of deVere Group comes as the Bank of England and the Treasury announced that a digital pound could be used by households and businesses for everyday payments in-store and online.
A
ccording to officials, the so-called ‘Britcoin’ would be used alongside cash, rather than replacing it. “While cash is here to stay, a digital pound issued and backed by the
Bank of England could be a new way to pay that’s trusted, accessible and easy to use,” Chancellor Jeremy Hunt noted. “Tat’s why we want to investigate what is possible first, while always making sure we protect financial stability.” Te central bank digital currency
(CBDC) would use blockchain technology currently used by cryptocurrencies to record transfers on a central digital ledger. Te announcement reflects what we and
But it is important to point out that these state-backed,
“As more and more countries introduce their own CBDCs, I’m
many others have been saying for a long time: that digital currencies are an inevitability in the ever more digital world in which we live. If tech is increasingly at the core of how we live,
programmable digital currencies will provide governments with greater oversight of citizens’ transactions in real-time. Tey are going to be a game-changer in the financial system as they will be able to track and trace every purchase and monitor every penny of the money that’s being spent. Tis is why Bitcoin and cryptocurrencies will become increasingly attractive. Tey still have all the pluses of
confident that the case for cryptocurrencies, such as Bitcoin, will grow stronger.”
work, do business and much more, it’s logical to have money that is also tech-driven too. It seems that this is now a view shared by the UK government. As more and more countries introduce their own CBDCs, I’m
confident that the case for cryptocurrencies, such as Bitcoin, will grow stronger. CBDCs might have many advantages, including convenience, efficiency and transparency, but what they do not offer the user is privacy. Of course, the government and other CBDC proponents will object to criticisms, saying that they are ‘alarmist’.
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being digital – speed, efficiency and convenience – but they are fundamentally different as they run on an open, immutable blockchain. Tey are global, borderless, tamper-proof and censorship-resistant. CBDCs are reportedly under development in more than 100 countries globally.
In the winter of 2022, the Beijing Winter Olympics were used to launch China’s new digital
currency. Te digital yuan had already been trialled in various cities across China the year before, but the Games were the first time it was piloted on a global stage with mainly foreign users. In conclusion, we will have a multi-faceted system of currencies
moving forwards. Te mix will include fiat, CBDCs, and crypto. While there are pros and cons to all, for many people programmable CBDCs will be unattractive due to the privacy and government tracking concerns.
April 2023 | 17
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