Call to Action - Digital Pound Consultation (CBDC)
Updated: Jun 21
The UK needs YOUR responses to the CBDC consultations!
The Bank of England has put out two consultation papers on the 'Digital Pound' with responses due 7th June 2023
These consultations are asking for feedback on their proposal to introduce a Central Bank Digital Currency (CBDC). You can read the full documents here: https://www.bankofengland.co.uk/paper/2023/the-digital-pound-consultation-paper
The House of Lords and some journalistic publications have already provided comments on CBDCs, which you can read on the links provided below:
The House of Lords economic affairs committee report on CBDCs is entitled: “Central Bank Digital Currencies – a solution in search of a problem?” (https://committees.parliament.uk/publications/8443/documents/85604/default/)
A paper prepared for the European Parliament says that the risks of rolling out a digital euro currently outweigh the benefits, and a CBDC should not be introduced unless “new elements” emerge (https://www.finextra.com/finextra-downloads/newsdocs/ipol_ida(2023)741507_en.pdf).
Countries that have adopted CBDCs, at considerable cost and expense, have found out their citizens simply don’t want to use them (https://www.coindesk.com/policy/2023/02/24/why-nigerians-arent-turning-to-the-enaira-despite-crippling-cash-shortages/)
And yet HM Treasury and the Bank of England appear hell-bent on forcing the UK to adopt a CBDC. Why?
We believe the reason is simple – an unjustified fear of Bitcoin.
Buried in the back end of the Bank of England’s consultation paper is a revealing statement: “Widespread adoption of a non-sterling digital form of money in the UK is unlikely but its impact would be very significant and be beyond the tolerance of UK authorities... By reinforcing the use of sterling for UK payments and enabling new payments functionality, the digital pound could pre-emptively reduce the chance of widespread adoption of non-sterling digital money in the UK.”
Our mission is to help the UK government understand that Bitcoin is a benefit, not a threat; and that adopting Bitcoin (whether as a treasury reserve asset, or as a means of making faster, cheaper digital payments via the Lightning Network, or as an industry that can stabilise renewable grids via demand response and reduce methane emissions) can have manifest and far reaching benefits for economies that embrace it, rather than fruitlessly fighting it. Particularly if those economies are early adopters, rather than being late to the party.
Bitcoin Policy UK are preparing our own responses to the Bank of England and the Treasury’s consultations, but we also need YOUR help.
How to respond?
General responses - Please respond using the web form here: https://app.keysurvey.co.uk/f/41651494/3010/
Developers and those with tech expertise - Please respond using the web form here: https://app.keysurvey.co.uk/f/41652411/5d1a/