Central Bank Digital Currency (CDBC)
You may be familiar with or heard of digital currency. Bitcoin is an example of a digital currency that has been around for many years.
A CDBC is (like Bitcoin) also a form of digital currency. However, this is where the similarities end.
Unlike Bitcoin which uses a de-centralised model (i.e. no one controls Bitcoin) , CDBCs are centralised in nature. Centralised means that it is controlled by a central authority (probably the Bank of England).
Why Centralised Currency Can Be Bad For You
With a CDBC it will be possible for Governments to easily mess around with your money. For example, a CDBC will allow UK GOV to easily:
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Issue CDBCs that can only be spent on specific goods or services. Like meat? Well your love for real meat might not fit in with UK GOV climate policies and therefore it will be possible to stop you buying meat.
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CDBCs are programmable and can be set with an expiry date. You’d better keep a diary of when you need to spend your CDBCs by.
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If UK GOV (or one of its powerful sponsors) doesn’t like what you said online about it or one of its controversial policies, it is possible to easily revoke your CDBCs thus leaving you without any ability to pay bills for basic necessities such as rent, food, heat, clothing etc.
UK Gov Currently Exploring CDBCs
References:
My View on CDBCs
I do not believe that CDBC is a good thing for our democracy or our individual freedom to choose how we transact for goods and services and with whom.
As such, I will strongly oppose any measures to introduce CDBCs to the United Kingdom.