In April 2021, The Bank of England and HM Treasury announced the joint creation of a Central Bank Digital Currency (CBDC) Taskforce to coordinate the exploration of a potential UK CBDC.
A CBDC would be a new form of digital money issued by the Bank of England for use by households and businesses. It would exist alongside cash and bank deposits rather than replacing them. [to start]
The overall conclusion of the House of Lords is that they had yet to hear a convincing case for why the UK needs a retail CBDC which raises various questions that should be addressed before introducing a UK CBDC.
It’s a solution in search of a problem. The search for the problem began.
Conveniently, so very conveniently, along came the failure of FTX in “unregulated space.” That becomes the problem they were searching for.
HERE COMES THE REPORT OUTLINING THE PROBLEM
The United Kingdom will, by the end of the year, release a report featuring some proposed steps for a central bank digital currency (CBDC) and why they must do it.
Sir Jon Cunliffe, the Bank of England’s Deputy Governor of Financial Stability, announced the report’s release at a recent speech titled “Reflections on Defi, digital currencies, and regulation.”
“‘Crypto’ was born in unregulated space: indeed, part of the objectives of its early developers was to create a financial system outside regulation. While not yet of a systemic scale, the crypto ecosystem has grown very rapidly in recent years and broadened to encompass a range of financial services.
“The experience of the past year [FTX] has demonstrated that it is not a stable ecosystem. Part of this is because its foundation is completely unbacked instruments of extreme volatility that can swing wildly in value [he calls it unregulated space].
They found their problem to support the need for a UK CBDC.
The report states the need for a crypto world within the regulatory framework. And, if so, how?
He aims to bring these activities and entities within regulation for three reasons:
- First, and most obviously, the need to protect consumers/investors.
- The second reason is the need to protect financial stability.
- The third reason for bringing the activities of the crypto world within the relevant regulatory frameworks is to foster innovation.
They have a bill coming up to make CBDC happen. Cuniff states in the deFi:
“The Financial Services and Markets Bill, currently in Parliament, addresses the regulation of payment systems using “digital settlement assets” defined as “digital representations of value” – in other words, digital tokens representing money.
“The FTX example underlines how important these aspects are, “Cuniff says.
“Finally, let me turn to our work with the Treasury on central bank digital currency, or, to put it more plainly on the issuance by the Bank of England of a digitally native pound sterling. Our plan remains to issue a consultative report around the end of year setting out the next steps that we propose.
“Over the past few days, I have had a few comments both to the effect that the collapse of FTX shows that we need to get on and issue a digitally native pound – and to the effect that FTX shows that we do not need to do so.
“… FTX in particular and the crypto ecosystem, in general, are emblematic of these new technologies and the possibility that they might revolutionize financial services and the forms that money takes in our economy.
“For some perhaps the lesson is that tokenization and digitalization of finance should not take place in unregulated space and, moreover, needs to be underpinned by a robust and reliable of digital settlement asset. “
With Joe Biden, a mere figurehead and the far-left in control of the entire US government except for the House, expect the contagion to hit the US.
From there, it’s only a hop, skip, jump to digital IDs to “protect us.” And those 87,000 new IRS agents will also be right there to “protect” or take our digital currency [CBDC] with a click of the computer keyboard. No more hiding money under the mattress. The currency will be completely controllable by the central government. Big central government is there to help, and you won’t have anywhere to run. Money is freedom. A central bank is the opposite of freedom.