UK Central Bank Digital Currency

UK Central Bank Digital Currency

11:29 AM, 10th November 2021, About 3 weeks ago 7

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HM Treasury (HMT) and the Bank of England (the Bank) have announced the next steps on the exploration of a UK Central Bank Digital Currency (CBDC). CBDC would be a new form of digital money issued by the Bank of England and for use by households and businesses for their everyday payments needs. It would exist alongside cash and bank deposits, rather than replacing them.

In 2022, HMT and the Bank will launch a consultation which will set out their assessment of the case for a UK CBDC, including the merits of further work to develop an operational and technology model for a UK CBDC. It will evaluate the main issues at hand, consider the high-level design features, possible benefits and implications for users and businesses, and considerations for further work.

This consultation will form part of a ‘research and exploration’ phase and helps to inform policy development over the next few years.

No decision has been made on whether to introduce a CBDC in the UK, which would be a major national infrastructure project. In April 2021, the Bank and HMT initiated the joint CBDC Taskforce to coordinate the exploration of a potential UK CBDC. The Bank also set up the Engagement and Technology forums, where relevant stakeholders from industry, civil society and academia provide strategic and technical input to the work on CBDC.

The 2022 consultation will inform a decision on whether the authorities are content to move into a ‘development’ phase, which will span several years. A technical specification would follow the consultation explaining the proposed conceptual architecture for any CBDC. This could involve in-depth testing of the optimal design for, and feasibility of, a UK CBDC.

If the results of this ‘development’ phase conclude that the case for CBDC is made, and that it is operationally and technologically robust, then the earliest date for launch of a UK CBDC would be in the second half of the decade.

Economic Secretary to the Treasury, John Glen, said: “This consultation will begin an open discussion on the role a UK central bank digital currency might play in the UK.

“I’d encourage everyone to contribute to the discussion so we can explore the opportunities this could bring, as well as understanding any risks it may pose.”

Deputy Governor for Financial Stability, Jon Cunliffe, said: “The plan to publish a consultation next year on CBDC is a crucial step in our policy development, especially as we further our thinking on the pressing issues at hand. What it will do is provide a platform for interested parties and relevant groups to engage with the key questions on the merits of CBDC, and whether the public sector should advance to a development phase.”



Comments

by moneymanager

16:28 PM, 10th November 2021, About 3 weeks ago

The CBDC will NOT be issued by the Bank of England or ANY national bank, they will be issued by the Bank of International Settlement as eloquently explained by Augustin Carstens, the BIS CEO, he also explains how that issuance and the facility of the SMART (dumb) grid will enable the bank to control every action, eveywhere, every second, that control is to be made more total by the abolishing of cash which he describes simply as "this expression of the central bank's liability", in other words, the banks sees "your money" as their debt and it has no intention of allowing it to be used in any way against its own objective.

by terry sullivan

10:50 AM, 11th November 2021, About 3 weeks ago

part of wef reset--it must be stopped

by Andrew Wright

11:09 AM, 11th November 2021, About 3 weeks ago

Reply to the comment left by moneymanager at 10/11/2021 - 16:28
CBDCs are not issued directly by the Bank for International Settlements. They are issued by the member central banks themselves. The BIS is, however, conducting a lot of research into various aspects of retail and wholesale CBDCs, including by now 4 or 5 parallel pilot schemes for cross-border settlement between different CBDCs to ensure interoperability, involving several central banks who issue their own test CBDCs. Large questions remain over how far central banks should extend their activities given the possibility of edging out commercial banks who, despite some views, provide useful intermediation in markets. Use of accounting terminology does not imply literally owing money to anyone, and central banks can make more money when needed. Most money is already electronic; a cryptographic form of it is just the next stage of its evolution.

by moneymanager

11:54 AM, 11th November 2021, About 3 weeks ago

Reply to the comment left by Andrew Wright at 11/11/2021 - 11:09
That's not what the CEO, Augustin Carstens, says here:
Agustín Carstens, general manager of the Bank for International Settlements (BIS), delivers remarks on the next steps for central bank digital currencies (CBDC). He spoke at a Peterson Institute for International Economics virtual event held March 31, 2021.

https://youtu.be/0qhUx_z4-Pc

by Amanda GdM

7:36 AM, 13th November 2021, About 2 weeks ago

Reply to the comment left by terry sullivan at 11/11/2021 - 10:50
We are moving to a Chinese style points system where “be a good citizen”… and do as we say and you will be happy and we will “allow” you to live your life. You want a mortgage… be a good citizen and comply…. You want finance … be a good citizen ….

I weep for the future generations.

So many people can’t see it as “they” make it hard to connect the dots.

The “passports” for your freedom to live are just the start….

Moan over !

by terry sullivan

12:54 PM, 13th November 2021, About 2 weeks ago

Reply to the comment left by Amanda GdM at 13/11/2021 - 07:36
time for resistance--violent if needs be

by jguy

16:12 PM, 16th November 2021, About 2 weeks ago

Reply to the comment left by terry sullivan at 11/11/2021 - 10:50
How can any of us minions stop it?

Its part of a 200 year plan and this part was inaugurated in 1992. All institutions are now fully infiltrated and on their path...

Barclays have already broadcast their intention to be Britain's largest landlord...

"You will own nothing and be happy" Ha!


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