Central banks around the world have been exploring the idea of ​​launching CBDCs in recent years, which many have interpreted as a growing response. Encryption currencies (In particular Bitcoin) And cash reduction. The UK government has recently confirmed that the option is to “actively explore”.

Treasury statement

A.D. On November 9, Treasury Secretary John Glenn confirmed in a statement to parliament that the CBDC was being evaluated. Mr Glenn said the UK, like other countries, was actively investigating the role of the Retail Central Bank’s digital currency (CBDC) as a complement to cash and bank deposits.

“Retail CBCC is a new type of digital currency, named after the curling and provided by the Bank of England, for the use of people and businesses for their daily payment needs.

Mr Glenn stated that “no decision has been made” and that the HMM Treasury and the Bank of England will publish a review by the UK CBC in 2022.

If it is decided to continue, the next stage of construction and testing will begin and if all the test results are summarized in the CBDC and are strong in practice and technology, then the “first date will start” UK UKC will be in the second half of the decade.

In response to this announcement, some experts have warned of the impact CBC will have on UK users, while others have warned of dire consequences.

Read more Bitcoin for Kids: Is it smart and should kids invest in crypto?

Impacts were assessed

Zumo Business Director Eddie Rob says consumers should not have to worry about being affected by the changes, at least recently.

“Consumers will not need to worry about the immediate impact of this announcement on their pensions, savings and personal finances during the second half of the first decade,” he said.

“The Bank of England has made it clear that any future CBDC will not be replaced by cash and bank deposits, and to be profitable, the CBDC will go directly to cash and deposits one by one.

“It was also unique that this CBC consultation only applies to domestic retail payments – sadly there are still cross-border payments where there is still a lot of conflict and consumers are still charging prices.”

Mr Rob Boein examines the challenges posed: “The Bank of England could find itself in the middle of a rock and a solid spot. Make the CBDC more attractive, and risk a bank run that erodes bank deposits. , And how much it costs and complexity to have an electronic bank note.

While Mr Rob believes he will have a significant impact on consumers, Tillie founder and CEO Cameron Parry warned that savers could be severely affected by the changes.

Do not miss
TikTok Warning: Your children may be the target of investment scams. [WARNING]
Martin Lewis has issued an urgent warning about Bitcoin investment [EXPERT]
Gold-backed savings account 2% ‘Unbeatable return’
[INSIGHT]

Mr Parry said: “Instead of giving consumers more financial freedom and flexibility, the central bank has issued a stable currency that will strengthen the monopolies of the economy.

“It is worse than both worlds – by combining the random collapse of the currency with the cryptocurrency complexity. It also allows the central banks to pursue reversed economic policies as negative rates.

“With all this, the central banks will be able to temporarily increase demand for the central bank’s output by giving the dollar, the pound, the euro, the yuan, etc. to the emerging economies.”

Mr Parry pointed out that there was an “elephant in the room” around the CDCs. This is a risk that the British may face.

Mr Parry went on to say: “The government agency can see every transaction that an individual makes and the state’s control over the individual, because these agencies have the power to easily eliminate the individual’s chances of earning money.

“For example, if a person is suspicious or a way of coercing public behavior – the relevant hypothesis is that instead of vaccination passports, the agency may lose access to your money until you get a double vaccination. After that, you will have to eat until then.”

“Britain”

Although the government and the BOE have not yet made a decision on the CBCs, it remains to be seen where the state and financial institutions stand on the issue. In recent months, Chancellor Rishi Sunak has made it clear that he hopes to open a digital currency, dubbed “Brittonin”.

Mr. Sunak also acknowledged the need for technological advancement in the financial sector in April.

“Our vision is for a more open, green and technologically advanced financial services sector,” he said.

“The UK is already leading the way in innovation, but we need to move on.

“And if we can capture the extraordinary potential of technology, we will make the UK position as the world’s leading financial center.”

In this regard, John Kunleif, Deputy Governor of the BoE Financial Stability, recently shared his belief that financial regulators need to be strong on digital assets in the future. He warned that cryptocurrencies such as Bitcoin could soon expand into a wider financial system.

Mr Kunlef told the BBC: “Which point? [digital assets] The danger is imminent. I think regulators and legislators need to think about this.

“On the regulation on crypto asset management … we have to start working to make sure the regulation exists.”

In recent months, the Financial Conduct Authority has also announced plans to crack down on risky cryptocurrency investments, highlighting how forces that seem to be pushing the UK further away from some digital assets for investors and investors.