A campaign has been launched against a Bank of England plan to introduce a central bank cryptocurrency. This is also known as Central Bank Digital Currency (CBDC). This campaign comes from the British Tax Reform Council, a recently established non-profit organisation.
“CBDCs are dangerous”
The Tax Reform Council warns that moving towards such a CBDC could seriously compromise individuals’ privacy. The Council believes that a cryptocurrency from a central bank can lead to more government supervision, more interference from the tax authorities and a greater risk of cyber attacks. In addition, there may be hasty changes in the tax system.
The Council is not the only one concerned about this decision. The British Bitcoin Collective, which aims to promote honest and open dialogue on all things Bitcoin, is also making its voice heard. Jordan Walker, co-founder of UK Bitcoin Collective, stated that “the adoption of CBDCs in the UK is dangerous on several fronts.”
“We are giving the government and the central bank more control over our money. This brings the monetary system even closer to the political system, which has caused great problems in the past and today. Instead, we should strive to separate money from politics.”
Why CBDCs?
In the UK, the Treasury and the Bank of England have hired people to bring these CBDCs to life. The Bank of England stressed the “need” to create a digital version of the British pound despite opposition from the wider crypto community.
Proponents of CBDCs, such as the Bank of England, argue that these central bank cryptocurrencies can provide greater financial inclusion. It would also save costs and provide more security than the current monetary system.
For example, opponents in the crypto community say that Bitcoin also has all these advantages. El Salvador is the perfect example of this. This Latin American country has given many residents access to the financial system through the adoption of Bitcoin. Before the introduction of Bitcoin, 70% of the country was unbanked.
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Source: Btc Direct
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Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
