The establishment of a central bank digital currency (CBDC) is without context one of the major objectives of British Prime Minister Rishi Sunak. As soon as he came to power, he announced his intention to introduce a high-performance CBDC. The contours of this plan seem to be becoming clearer.
Would setting up a CBDC be an economic necessity?
The English authorities seem to be moving closer and closer to their goal of making the CBDC the only legally recognized currency in Britain. A joint study, published on Sunday February 5, by the Bank of England and Her Majesty’s Treasury (an executive department of the British government, whose mission is to develop and establish the economic and financial policy of the State), indicates that this project should see the light of day by 2030.
For now, the authorities are studying the feasibility of the project. The latter is considered necessary in all ways, given the current circumstances of the UK money and financial market.
Indeed, the Bank and the Treasury believe that the use of a digital currency is not just an aspiration of new authorities in the country. It is driven by the reality of the facts. According to them, the latter demonstrate that fiduciary money occupies a less and less important place in the country’s financial transactions. This would represent only 15% of all transactions carried out in the country in 2021 against more than 50% in 2011.
According to the Bank of England and Her Majesty’s Treasury, the CBDC project would therefore only be a means of ratifying an already constant practice.
Public opinion will be used
We know that since its announcement at the end of October 2022, the news has drawn a lot of criticism. In an attempt to silence them, the Bank and Treasury are considering launching a public consultation on whether or not to adopt a CBDC in Britain.
They thus hope, during the four months that this procedure will last, to collect as many opinions as possible on the advisability of such a choice. A roadmap should be published later.
The debates promise to be stormy. Many skeptics had notably denounced a Machiavellian plan by the authorities aimed, in the long term, at restricting the public freedoms of British citizens.
In any case, the government seems to have the necessary levers to pass a CBDC, as it did. in Nigeria for exampleeven if the realities of this country are far from those of Great Britain.
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