The Great Digital £Pound & CBDC Debate Continues…
The Great Debate continues… with the first in a new series, help at the Centre of Fintech at the University of East London shcool of Business and Law on 25th April 2023.
Here a summary of the debate:
UEL Great d£ Debate 25 Apr 2023 Summary
After a slow start, there was no shortage of dissenting voices and a wide range of views under the microscope of a debate that turned out to be so multifaceted and wide ranging that it was surprising that even for the experts on the panel whose views ranged from broadly supportive to positively oppositional to the digital pound. Including one panel member who sees the position of the traditional banks and fractional reserve banking as an immovable object which could prevent adoption of a domestic (retail) CBDC.
The debate recognised a clear distinction between this and the rapid progress being made around the world towards international or wholesale CBDCs — but noted the lack of scrutiny in this area, alongside the lack of media coverage of the domestic digital pound, it being almost wholly absent from mainstream debate.
Indeed the international and global aspects of the context for the introduction of CBDCs more generally was well plumbed. Including the ongoing realignment around China and the BRIC countries joined by Saudi Arabia and others and the increasing prevalence of the digital Yuan.
Especially after the turning point which was the weaponization of the dollar economy, and the SWIFT system in the context of Putin’s Ukrainian war.
Concerns about privacy and the programmability and so control of digital money and the oceans of valuable and sensitive new data figured largely with views ranging from this being an imminent danger to the idea that governments are already capable of targeting individuals via their bank accounts (as per Canada and their truckers via the banks) seeing little difference.
While others recognise that the opportunities offered by readily available access to sensitive and ongoing data are man, all friction, check or balances, having being removed, as very significant — indeed dangerous tfor o democracy.
A professor from India in from the audience noted that the introduction of India’s CBDC is being seen there an a wholly positive light by those involved. Chiefly those in the financial system and to some extent academia. Perhaps unsurprisingly as part of the BRIC block seeking to benefit from the breakdown of the dollar’s hegemony — with much to gain.
Overall , and with some dissent, the progress towards see a CBDC for the UK was seen as inevitable. Especially for a wholesale or international CBDC for International Settlements and similar. But also domestically, with the ground being cleared for this by the Bank of England and Treasury’s joint project.
Near the end of the debate the audience and panellists warmly welcomed the recent proposal to create a digital money commissioner to address directly the new and pressing issues of data privacy, turning the assurances around programmable money and the protection of cash from mere, ephemeral, assurances into fully fledged democratic protections enshrined in law and protected and championed by an institution, the Office or the Commissioner for Digital Money,in the mould of the Information Commissioner and accountable to Parliament.
