• The Bank of England and the UK Treasury have released a consultation paper outlining their case for a retail central bank digital currency (CBDC) or “digital pound.”
• Bank CEOs in the UK are blocking customers’ access to cryptocurrencies due to concerns over fraud and volatility.
• The UK is taking steps towards confinement and restriction of the bitcoin and cryptocurrency industry while pursuing a CBDC system.
The Bank of England’s Proposal
The Bank of England and the UK Treasury have released a consultation paper outlining their case for a retail central bank digital currency (CBDC) or “digital pound”. The paper has been reviewed by the Bank-Treasury CBDC Taskforce, which was established in April 2021. If introduced, the digital pound would be used by households and businesses for their daily payments. The Bank of England and the UK Treasury will engage with stakeholders across the country to seek their views on the proposed model. Simultaneously, a roadmap unveiled by Governor Andrew Bailey and Chancellor Jeremy Hunt detailed their aim to prevent a run on banks, including limiting Britons to transferring only a few thousand digital pounds into their accounts.
Banks Blocking Cryptocurrency Access
Just as these developments are taking place, bank CEOs in the UK are blocking customers’ access from accessing cryptocurrencies due to concerns over fraud and volatility. Alison Rose, CEO of NatWest Group told the committee that her bank had taken a “pretty hard line” on cryptocurrency due to its associated risks. Social media and technology platforms were cited as major sources of fraud but executives expressed support for new regulations proposed by the Treasury.
Restrictions On Bitcoin And Cryptocurrency Industry
The UK continues to make further strides towards confinement and restriction of bitcoin and cryptocurrency industry while simultaneously pursuing its own CBDC system that could potentially limit citizens’ financial freedom. Banks can now block customer access from investing in cryptocurrencies while government officials work on regulating them further without citizen input or approval through consultations with stakeholders across countries.
Financial Obedience With Strict Regulation
These events indicate capacity for government control with major companies helping lock citizens into financial obedience with strict regulation regarding usage of each private citizen’s money. Banks can now limit transfers up to £10,000 per customer, preventing large outflows from traditional banks all while protecting against potential instability caused by frictionless nature of digital money thus promoting security measures among institutions associated with banking services