Last week, two big things happened in the Central Bank Digital Currency (“CBDC”) arena. Another G-7 economy, the UK, took a big step toward adopting a CBDC. At the same time, the first largish economy to have launched a CBDC, Nigeria, descends further into financial chaos.
One of the world’s oldest central banks, the Bank of England (“BoE”), and the British government jointly confirmed that a digital pound would probably be necessary at some point in the none-too-distant future. While they were saying that, lengthy queues were forming at ATMs across Nigeria, the first largish economy to launch a CBDC, as most Nigerians struggle to access physical money following the government’s disastrous demonetisation campaign.
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By Sikh For Truth, Editor of Truth Talk UK and regular contributor to The Exposé
“A New and Trusted Way to Pay”?
Let’s begin with the UK, whose latest Chancellor of the Exchequer Jeremy Hunt this week described CBDCs as potentially “a new and trusted (state-backed) way to pay” that is likely to emerge some time this decade. John Cunliffe, Deputy Governor for Financial Stability of the Bank of England (not to be confused with the creator of the children’s books and animated TV series, Postman Pat) said:
Our assessment is that on current trends it is likely that a retail, general purpose digital central bank currency — a digital pound — will be needed in the UK.Jon Cunliffe: The digital pound, BIS, 7 February 2023
With cash usage in rapid decline in the UK, a digital pound would perform the “anchor function” which cash currently carries, allowing the holder access to Bank of England money, Cunliffe said. It would also counter the risks posed by so-called “stable coins”, which are relatively new forms of cryptocurrency that are pegged to the value of a fiat currency (e.g., the dollar or the euro), while also ensuring that certain tech firms are not able to monopolise areas of the online market with their own coins.
These are all classic justifications for launching a CBDC. But not everyone in the UK’s political establishment agrees that they constitute sufficient cause. For example, the former governor of the Bank of England, Mervyn King said in January 2022: “By far the most important question is what is the problem to which a CBDC is the solution?” King said a number had been proposed but “none of them were terribly convincing”.
Also, the House of Lords’ Economic Affairs Committee recently concluded that it is “yet to hear a convincing case” for why the UK needs a retail CBDC. On the contrary, while a CBDC “may provide some advantages”, it could present “significant challenges” for financial stability and the protection of privacy.
But the Bank of England and the UK Treasury respectfully beg to differ.
“A digital pound would be a very substantial financial infrastructure project that would take several years to complete,” Cunliffe said in a speech to UK Finance, a trade association representing over 300 firms in the UK’s banking and financial services sector. “It would, as many in this audience know, have major implications for the way we transact with each other and, more broadly, for the financial sector and the economy in general.”
An Extra Layer of Operations
One major implication is the impact it could have on the current banking system. As the UK-based economist Richard Werner and author of the critically acclaimed book, Princes of the Yen, has noted, if central banks were to offer retail CBDCs directly to individuals and businesses, meaning they would all be able to hold the equivalent of a current account at the central bank (as long as they have a smartphone and don’t engage in the wrong sorts of behaviour), it would more or less mean the end of banking as we know it:
“All you would need is a shock or a crisis. All the money would move from the bank deposits to the central bank and the banking system shuts down.”
This would lead to the creation of what Werner calls “mono-banking,” in which just one lender, the central bank, is able to operate.
To avoid this outcome, the BoE is considering imposing a limit on the holdings of the new digital pound of £10,000 to £20,000 ($12,017 to $24,033) once it comes into existence. The digital pound would also not bear interest.
The last thing the world’s central banks want to do is wipe out large private banks, whose interests they tend to serve above all else. In fact, central banks are working hand-in-glove with many “too big to fail” (“TBTF”) lenders to set up the CBDC infrastructure. Instead, what the BoE and many other central banks are talking about doing is creating an extra layer of operations within the financial system. And while the BoE (with help from the private sector) will create the currency, private banks will be the main public interface for that new layer, as Cunliffe himself posited in a panel discussion last June:
We will produce the asset and the rails but the interface with the public would actually be done by private-sector payment providers. It could be banks that will have the customer accounts payable to integrate money into their digital applications…
There are other models. One model is we allow the private sector to do the tokenization, to provide their own money that we back one-for-one with central bank money.
So, CBDCs will probably not be used to supplant the entire private banking system, as some feared. But what they could – and probably will – end up doing is put out of business small, local banks and credit unions, which will not be able to cope with the added layers of regulatory costs, burdens and complexities. In the US, the National Association of Federally-Insured Credit Unions (“NAFCU”) warned last year that the issuance of a digital dollar could erode financial stability, arguing that the costs and risks associated with introducing a CBDC are likely to outweigh the touted benefits.
The above is extracted from an article written by Nick Corbishley and published by Naked Capitalism. Read the full article HERE.
Featured image: Bank of England and UK Treasury Supports ‘Digital Pound’ Project, Says UK is Likely to Need CBDC, Crypto Mismatist, 5 February 2023
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Tory Says: 5th Gen. Warfare Psyops and You. An Insiders Briefing. Enjoy the Show. Directors CutSunday, February 19, 2023 0:51
I would describe it as wanted rather than needed. This and digital ID together means absolute control over the great unwashed by the hypocritical self-chosen ones. Perpetual poverty against the rich wanting to be richer.
[…] – UK government and Bank of England says a CBDC will be needed in the not-too-distant future […]
The decline of cash use has slowed as people are becoming poor through job loses and the hike in fuel prices and are reverting to cash to have better control of what little money they have and to avoid over-spending on a credit card and incur the savage interest rates.
The Bank of England was created to fund wars by taxation on the public.
Just after it was created, Peterson, who lost money on his Panama Silver caper (trying to steal Silver from Potosi, Bolivia on its way to Spain) dragged Scotland into it.
John Churchill was paid 6,000 Guineas per year to find wars for the owner of the bank. Within a few years he started war against Spain.
Bankrupt useless fatso Winston Churchill started WW2 for the bank because the German economic miracle (throwing out ‘British’ banking) was a threat to their debt slave hegemony over mankind.
The US has replaced Britain as the Useful Idiot cannon fodder of choice for the iwners of celtral banking although again it showed its depravity by the Iraq invasion. The real purpose was to steal the gold from oil sales at the Bank of Iraq and to destroy the Sumerian Babylonian history from the museum. Central banking is Babylonian.
A History of Central Banking and the enslavement of manking by Stephen Mitford Goodson goes into the origins of the Vank of England.
Rothschild’s bank financed Hitler before the war, throughout and after the war.
The Tower of Babel and Hanging Gardens of Babylon still firmly standing.
so when we all sign ul we can have no more than 10k to 20k,… im all in 😀
keeping the poor poor is all this is about! another layer of population control.
In my opinion based upon the duties of the Papacy, the UK CORPORATE Government will be liquidated for its crimes against mankind in accordance with Ecclesiastical Law.
It’s just a matter of time before that event manifests itself.
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How ‘Kosher’ the surviving European Monarchy with their BIS and all the Central Banker Family ‘Baby Eaters’ with their Hooker Politicians and Deep State Minions, profligate Propagandist Instruments and asinine academics make it all sound; and SO convenient.
No doubt about it…The Monarchs ARE those supporting and financing the Nazis, Bolsheviks, Mao’s Youth Murderers and all the Dictator Monsters LIKE THEMSELVES all the time. And, no doubt…Their OWNED Agent Benedict Arnolds in the U.S. deserve execution for treason/sedition.
Wonder what ‘The People’ in the UK and all throughout the Commonwealth plan to do when all goes down…AND IT WILL GO DOWN.
The only good thing about CBDC’s is if they wake people up and get rid of central banks.