Bank of England (Central Bank Digital Currency Consultation)

HeatpumpFool

I have heard on the grapevine that there is a consultation for businesses and the general public by the bank of England for views on a future digital currency. 
Has anyone on the forum heard of this?
Is it general knowledge or am I being misled?

jon81uk

HeatpumpFool said:

I have heard on the grapevine that there is a consultation for businesses and the general public by the bank of England for views on a future digital currency. 
Has anyone on the forum heard of this?
Is it general knowledge or am I being misled?

https://www.bankofengland.co.uk/the-digital-pound#

Second answer when I searched online. Go to the sections "We’re asking people for their views" and "We’re engaging with businesses and communities" and it answers your question.

Also since this topic seems to attract conspiracy theories
"

• Would the digital pounds be used to monitor what I do with my money?

  If you used digital pounds, the Bank of England and the government would not collect any of your personal data and wouldn't be able to see how you spent your money. You would access the digital pound through a virtual wallet and you would have to share some personal data with your wallet provider. This is because you would have a commercial relationship with your provider and they would require some form of ID in order to prevent financial crime or fraud. Your privacy would still be protected by data privacy regulations and your personal data would not be shared with the Bank or the government.

Personally I can't see the point of this over just using credit/debit cards.

DullGreyGuy

jon81uk said:
Personally I can't see the point of this over just using credit/debit cards.

As it says in the consultation paper... the smaller the business the higher the fees a company has to pay to accept credit or debit cards and international fees are particularly high. Arguments are digital currencies will be a leveler for that 


I have to say that in general the paper isnt great at saying why digital currencies are needed at all, other than a few comments about innovation it seems to take it as a given that they are necessary and therefore focuses more on why the BoE should have one rather than just rely on the use of private or other central bank currencies.

Unfortunately as someone not in the core of banking some elements were slightly opaque on a skim read as dont know much about the wholesale commercial banking and RTGS Renewal etc.

eskbanker

HeatpumpFool said:

I have heard on the grapevine that there is a consultation for businesses and the general public by the bank of England for views on a future digital currency. 
Has anyone on the forum heard of this?
Is it general knowledge or am I being misled?

They've been talking about this for quite a while and published a discussion paper over three years ago, which attracted feedback that probably won't be particularly different this time round:

https://www.bankofengland.co.uk/paper/2021/responses-to-the-bank-of-englands-march-2020-discussion-paper-on-cbdc

[Deleted User]

I see they have a section in the FAQs stating they will limit how much you can hold. No thank you.

eDicky

It's been reported, including occasionally in mainstream media, that CBDC is intended to eventually supersede all other forms of banking and payments, and will be 'programmable'. However, if this thread is not deleted in the way that all other threads about CBDC have been, you can rest assured that there's nothing to worry about...

Alex9384

jon81uk said:

Also since this topic seems to attract conspiracy theories
"

• Would the digital pounds be used to monitor what I do with my money?

  If you used digital pounds, the Bank of England and the government would not collect any of your personal data and wouldn't be able to see how you spent your money. You would access the digital pound through a virtual wallet and you would have to share some personal data with your wallet provider. This is because you would have a commercial relationship with your provider and they would require some form of ID in order to prevent financial crime or fraud. Your privacy would still be protected by data privacy regulations and your personal data would not be shared with the Bank or the government.

Conspiracies or not, I think it's good to be cautious.

Alex9384

eDicky said:

It's been reported, including occasionally in mainstream media, that CBDC is intended to eventually supersede all other forms of banking and payments, and will be 'programmable'. However, if this thread is not deleted in the way that all other threads about CBDC have been, you can rest assured that there's nothing to worry about...

Why were they deleted? Do you mean on this forum?

flaneurs_lobster

Alex9384 said:

eDicky said:

It's been reported, including occasionally in mainstream media, that CBDC is intended to eventually supersede all other forms of banking and payments, and will be 'programmable'. However, if this thread is not deleted in the way that all other threads about CBDC have been, you can rest assured that there's nothing to worry about...

Why were they deleted? Do you mean on this forum?

You'd have to ask MSE Forum staff for their reasons for deletion.

My guess is that discussions around this subject get hijacked by the conspiracy theory anti-vax tin-foil hatters and veer so far away from anything to do with Money Saving, even in it's broadest compass, that putting it down is the most merciful thing to do for it.

If the discussion stays on-subject then it might be of genuine interest (at least to me).