| Where are we now with government plans to create a Central Bank Digital Currency (CBDC) – something which could potentially give the state unprecedented control over our lives? We are at an important juncture. You may well have responded to the government’s consultation on the so-called ‘digital pound’, a CBDC to be used for everyday transactions (often referred to as a ‘retail CBDC’)… Thousands of Together members and supporters were among the total of 50,000 responses, 99% of them from the general public. In what was described as a “huge public backlash,” respondents overwhelmingly expressed concerns about the implications for financial privacy and whether we would lose control of our money. In its response to this consultation, the government appears to be trying to calm public concern, while building support for the CBDC over time. They are pressing ahead with the design of the system while at the same time saying it’s “too early to make a final decision” on whether to introduce a digital pound. So what could happen now? It’s worth considering what is happening around the world… CBDCs are a new concept and, like all financial systems, depend on public trust. As this CBDC tracker shows, governments around the world are in the process of exploring their own CBDCs. Most are at the research, proof-of-concept, or trial stages. Three countries so far – Jamaica, Bahamas and Nigeria – have launched their own CBDC. But adoption rates are sluggish, suggesting levels of trust may be low. Seven countries have cancelled their CBDC projects, including Denmark and Ecuador, with Denmark’s Central Bank concluding that a CBDC was unnecessary and could lead to economic instability. The Swiss central bank has just said it sees no need for a retail CBDC as risks outweigh benefits. The European Central Bank has recently begun a two-year “preparation phase” for a digital euro. The UK government is a step behind the EU, saying it is “too early to make a decision now on whether to introduce a digital pound because that will depend on how the retail payments landscape evolves in coming years, both in the UK and abroad”. It looks as though the UK government is testing the water, continuing to lay the ground for a CBDC while watching to see what happens internationally, and if there is sufficient support from the public to make it – and any restrictions that might accompany it – work in the UK. If this is right, we are at an important juncture. With other countries abandoning CBDCs, and a huge public backlash, the project looks uncertain. Now is the time for us to make our voices heard, and assert ourselves. It is about what WE want – not the technocrats. That’s where Together – and you – come in… While the politicians and media say almost nothing about CBDCs, we have been bringing the issue to the attention of the public and helping get a big response to the government consultation. Now we need to push on, making more people aware of the dangers of a British CBDC and letting the politicians know we won’t accept being led towards digital dystopia, whether by design or negligence. |
Here are 6 key questions we should all be asking publicly now:
#1 What is supposed to be the point of this “digital pound” anyway?
Even the officials working on this project seem totally – embarrassingly – unable to answer the simple question “what problem is a CBDC supposed to solve?” “Look…um… what’s it for? It’s… it’s… to… keep track with the reality of how we all… um… we all… um… purchase, and … and … save … and … and … do our … um … work with our goods… um…. er … and … um…” – James Bowler, Permanent Secretary to the Treasury Most money these days is digital anyway. As we said previously: If the Bank of England and Government cannot demonstrate beyond a shadow of a doubt exactly how they could deliver a “Digital Pound” that actually benefits the people of this country without exposing it to nightmarish new risks, this elite project should be scrapped.
#2 Are government assurances of privacy worth much? The government says privacy would be a core design feature of a digital pound and that legislation would guarantee users’ privacy – but “given laws to fight financial crime, it would not be anonymous.” Given the government is already trying to pass legislation to spy on people’s bank accounts on the pretext of checking for fraud, who would have any confidence our financial privacy would be respected?
#3 Aren’t assurances that we won’t be exposed to the potential nightmare of “programmable” currency worthless – because the government is indicating “programmability” could be left up to intermediaries? “Programmability” is a key potential feature of CBDCs. What does this mean? In 2021, former deputy Bank of England governor Sir Jon Cunliffe said that government should consider programming a digital currency for commercial or social purposes: “You could think of giving your children pocket money, but programming the money so that it couldn’t be used for sweets.” That the chosen example should be naughty children prevented from doing the “wrong” things is probably quite telling. Control over how, when, where, and on what we can spend our money is a wet dream for central planners, technocrats and tyrants alike. The government has promised legislation to ensure that neither government nor the Bank could programme the digital pound to control people’s spending. But this means almost nothing at all if digital “wallet” companies who’d act as intermediaries could build restrictions on spending into their terms and conditions – or be “encouraged” to… We have already seen this in action in the area of censorship. The “Twitter Files” revealed how, behind the scenes, governments put pressure on Big Tech companies to censor at their behest. Not forgetting…
#4 What protection are laws when they are so easily changed – especially in “emergencies?” Once the infrastructure for a CBDC is in place and much of the population is using it for everyday payments, might a future government change the law to allow it to “programme” the CBDC?
#5 Can we trust Parliament to be pro-freedom? The government has committed to putting primary legislation before Parliament before the launch of a digital pound and giving MPs a vote. However, given the laws passed by Parliament in recent years and the level of scrutiny on other legislation being carried out by MPs, would you trust Parliament to safeguard our freedoms?
#6 How can ANY centralised government database be anything other than a massive target and security risk? Massive data breaches are commonplace. Isn’t this another massive, unnecessary risk of this project?
In the fight to live free we are up against powerful forces. #Together doesn’t have the resources of government or big business to communicate our message. We are run by a tiny core team, carefully. We don’t waste money on fancy offices or unnecessary expenses, but we do need a certain amount of money to keep going. And, at a key time in the life of the UK, we need to expand and make even more of an impact.
If you would like to help us do this, with a donation of any amount, we are extremely grateful and the link to donate securely online is HERE.
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