Will CBDC Replace Cash? CBDCs Are Coming!
Business / Cryptocurrency & Blockchain
UK makes a troubling “Britcoin” announcement.
State-backed virtual currency is now “likely” as the Bank of England and Treasury revealed CBDC roadmap yesterday.
Their plan foresees a launch date as early as 2025.
Yes, the UK is edging closer to issuing Britcoin – a proposed digital currency denominated in pounds.
In fact, there’s now a palpable sense of urgency around the political agenda of CBDCs.
It’s no coincidence that former finance minister and ardent CBDC supporter, Rishi Sunak; became appointed as UK prime minister.
Now, just two years after Sunak set up a CBDC research working group, the BoE and Treasury are officially voicing their support.
Hilariously, HM Treasury even posted a LinkedIn job ad on Sunday for the position of “Head of Central Bank Digital Currency.”
The backdrop for Sunak’s rise is last year’s 75% collapse of long duration UK gov bonds; and the pound’s all-time-low against USD.
The financial system is teetering and will need to be reset – furthermore, who better than Sunak to preside over it.
Better yet, Sunak is the son in law of Narayana Murthy…
You know, the Indian billionaire who runs Infosys, the largest digital ID and social credit system in the world, aka ADDHAAR system.
That connection will surely come in handy…
So is there any pushback in the UK, or will we be ringing in 1984 every New Year’s Eve from here on out?
Not everybody is onboard, it seems.
A report by the Lords of Economics Affairs Committee is warning that the introduction of CBDCs could lead to more “state surveillance” or even “financial instability.”
And former BoE governor, Lord Mervyn King; went as far as to say that CBDCs offer “risks but no obvious benefits.”
However, of course, the official narrative is already taking shape.
The pretext is that a new form of money will be needed; as cash use continues to decline in an increasingly digital economy.
Don’t credit cards and e-banking make most of our money digital already? Great question. Why, yes, they do!
However, that isn’t the point.
For the past few decades, central banks have had to load more and more toxic liabilities onto their balance sheets; just to keep the system from suffocating under its own weight.
The Bank of England’s balance sheet is now a record 60% of GDP. For reference, it barely touched 45% at the height of WW2.
This trend must continue.
And CBDCs are the perfect tool.
They’re generally defined as a digital liability of a central bank that is widely available to the public.
In other words, the central bank is about to absorb the most toxic liability of them all – fiat currencies.
In the wise words of Lord Acton:
“The issue which has swept down the centuries and which will have to be fought sooner or later is the people versus the banks.”
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Will CBDC Replace Cash? CBDCs Are Coming!
